kroger

Retailers are continuing to expand their private label products while pushing brand label products off the shelves. Where retailers were once content with building their brand in basic CPG categories, they have continued to expand their reach.

Most recently, Kroger has more than doubled the number of items in its Mirra line of private-label cosmetics, shampoos and other beauty products, and plans to add more, reports Dan Sewell. The grocery chain is making store brands a priority, and already offers more than 20,000 store brand items, up 25 percent from two years ago.

“CEO David B. Dillon said Kroger identified health and beauty as an underdeveloped area among store brands,” Sewell reports. Kroger points to the success of Whole Foods cosmetics as a reason to plant a foot into the beauty category.

Certainly, it will be interesting to see how CPG manufacturers respond to the expansion of private label into previously undisturbed categories. Will they go online? Sell direct? Appeal to customer loyalty?

Posted Tuesday, August 24th, 2010 at 6:00 am
Filed Under Category: Private Label, Retail Channel
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