Retailers are putting their weight behind “private label” store brands more than ever.
- This is bad news for brands who rely on these stores to move product. Cheaper store brand alternatives can undercut name brands.
- The move to private label is creating what Barclays calls a “sphere of despair” for brands.
For retailers, private label is all the rage.
Retailers from Whole Foods to Walmart are making big bets that consumers are more willing to buy goods without a name brand on them.
A new consumer packaged goods start-up, Brandless, has hinged its entire business model on the concept: it sells common household items devoid of brand labeling that always cost less than $3.
Retailers are now “more willing to invest in ‘store brands,'” because the stigma of “generic” goods has lifted, according to a note by Barclays.
It recently revealed that Amazon is sitting on a