The Private Label Manufacturers Association, citing new Nielsen numbers, reported that store brand sales jumped by almost 10% last year in mass merchants, club stores and dollar stores even as the mass channel came closer than ever before to overtaking traditional supermarkets as the place where consumers most often buy their groceries.
Total grocery sales in the mass channel reached $305 billion as compared to $324 billion in supermarkets, PLMA noted, referencing the Nielsen research.
Store brand sales in the mass channel increased in both dollars and units while national brands faced fractional declines, according to PLMA. Dollar sales of private label products gained 9.3% while unit sales advanced 9.1%. In contrast, national brands slipped 0.3% in dollar volume and 1% in unit volume.
Overall sales in the mass channel during 2017 rose 1.3% in dollar and 1% in unit sales. Total store brand dollar sales were $54.9 billion versus $50.2 billion in the previous year. In unit volume, store brand sales increased to 17.9 billion from 16.4 billion. Total sales for dollars and units were the highest on record, PLMA maintained.
In terms of market share over the 52-week period Nielsen studied, store-brand dollar share increased 1.3 percentage points to 18%, while unit share advanced 1.6 points to 21.4%, also all-time highs.