GHQ CENTER STORE
AN APPETITE FOR
As consumer tastes become more refined, retailers must target their
private label offerings to satisfy a savvier shopper.
BY ARIELLE SIDRANE
THE ALREADY FIERCE COMPETI; TION in the grocery space gained even more fire last month with some big names shaking up the status quo. Looking into the
future, this means that private label may play a
more important role than ever in helping grocers to differentiate their businesses.
Across the board, many retailers are already
turning to their private label lines as a means
of upscaling their selections. Retailers that are
not currently stocking premium private label
products may soon feel pressure from the
competition to do so, observers say.
The aggressive expansion into the U.S. marketplace by German retailers known for their
private label lines is something U.S. grocers
need to watch out for, industry observers say.
In June, CNBC reported Aldi’s plans to invest
$5 billion dollars into U.S. expansion over the
next five years.
Lidl opened the first of its 100 planned East
coast stores in Virginia in June, part of a U.S.
market entry set to take place through the
summer of 2018. A Lidl spokesperson says that
the majority of the store’s U.S. offerings will
fall into the premium private label category.
Amazon’s recent purchase of Whole Foods
could also put the pressure on traditional grocers. This move can – and likely will – steal
some of grocers’ prized foot traffic, observers
Knowing that upscale private label products
are what many shoppers are after and tailoring in-store offerings to meet this demand,
observers add, is one way that traditional grocers can keep up with the steep competition.
Upscaling can be done in a variety of different ways and mean different things at