Numerator: Categories, retailers with highest private label sales are...
Consumers continue to embrace private label items across a wide swath of categories.
Virtually all U.S. households purchased a private label item in the past year, with 60% consumers citing above-average value for the price, according to new data from Numerator. Almost all (99.9%) U.S. households purchased a private label grocery item in the past 12 months, followed by health & beauty (99.4%), household products (99.1%) and home & garden (98.4%). Nearly a quarter (23%) consumers think that private label items are as good as name brands, and 40% said they purchase such items to save money.
Across 10 major product sectors, Numerator found that private label products accounted for a quarter of unit volume (25%). The sectors with the highest private label share were office (43%), home & garden (33%), tools & home improvement (29%), household (28%) and grocery (25%).
[READ MORE: Numerator: Gen Z, millennials increasing private label spend]
The warehouse club channel had the highest portion of its sales as private label products (34.8%). It was followed by office (31.6%), mass (28.8%), home improvement (28.3%) and food (25.5%).
Among 20 of the largest U.S. retailers, Trader Joe’s and Aldi rely most heavily on private label products, with their owned-brands accounting for 78% and 77%, respectively, of their overall sales volume. Sam’s Club (33%), Costco (32%), Dollar Tree (31%), Walmart (26%), and Kroger (25%) also see more than a quarter of their overall sales volume come from private label products.
Fastest-growing private brands
Certain private brands are resonating more with consumers than others. Walmart’s “Bettergoods,” Target’s “Dealworthy” and CVS’s “Well Market” brands are the fastest-growing private label brands of the year, each increasing sales volume by +300%, followed by Sta-Green (Lowe’s, +231%), Family Wellness (Family Dollar, +144%), Fremont Fish Market (Aldi, +103%), B Pure (Dollar Tree, +93%), Way To Celebrate (Walmart, +58%), Holiday Time (Walmart, +58%) and Southern Grove (Aldi, +47%).
Six Walmart brands had over 50% U.S. household penetration in the past year, including Great Value (87% purchased), Equate (76%), Mainstays (72%), Marketside (71%), Freshness Guaranteed (70%) and Pen + Gear (50%).
While Walmart’s private brands are highly popular, Numerator found that another retail giant has had less success with its in-house products. Only 2% of Amazon’s sales volume is attributable to private labels.
Numerator’s Private Label Trends dashboard was most recently updated as of Aug. 4.
