Once-shunned store brands finding consumer acceptance
Grocery store brands once carried a stigma. With no-frills white packaging that telegraphed bargain basement and low quality, they were a last resort for consumers on tight budgets.
Today they are accepted goods on store shelves and in refrigerated cases.
From Safeway’s Open Nature to Target’s Archer Farms, grocery brands are challenging traditional brands from food companies, and preserving or improving their own slim profit margins.
"There is really widespread acceptance of store brands among consumers," said Janet Eden Harris, senior vice president of Market Force Information, which recently surveyed consumers and found that 96 percent said they bought private-label brands at least some of the time. "Sometimes I think they don’t actually know what is a store brand."
Sales of store-brand foods and other grocery merchandise took off during the recession, when shoppers were forced into frugality. But to the surprise of consumer and food analysts, sales of store brands have remained strong even as the economy recovers.
Through the last three years, sales of store brands grew 18.2 percent, accounting for $111 billion in sales, according to Nielsen. That is more than twice the rate of growth for national brands — 7.9 percent to $529 billion — in the same period.
"We expect private brands will continue to grab share year over year because of investments they’ve made in enhancing quality, innovation and hiring more people with brand experience to help them with marketing and promotion," said Todd Hale, vice president for consumer and shopper insights at Nielsen.
Total recall
Schneider Electric is recalling 15 million of its surge protectors because they might overheat or start a fire. The devices plug into outlets and are supposed to protect electronics from power surges. The recalled items were made in China and the Philippines before 2003 and are branded as APC SurgeArrest. They were sold at Best Buy, Circuit City, CompUSA and other stores from January 1993 to December 2002 and cost between $13 and $50. Consumers should immediately stop using the recalled surge protectors, unplug them and contact Schneider Electric at 888-437-4007 or www.apc.com for a free replacement.
