Store Brands Lift Grocers - Store Brands Lift Grocers Full:...

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“Store Brands Lift Grocers” Full: “Store Brands Lift Grocers in Troubled Times.” By ANDREW MARTIN December 13, 2008 LOVELAND, Ohio — Linda Severin, a Kroger vice president, has spent the last two years dreaming up new products to sell under the chain’s store-brand labels. Her creations, while inexpensive compared to national brands, are often fancier than the store brands of old. They include Mediterranean-style pizzas and cake mix with edible images of princesses. Her timing could not have been better. As the economy plunges into a deep recession, grocery stores are one of the few sectors doing well. That is because cash-short consumers are eating out less and stocking up at the supermarket. And store brand products, which tend to be cheaper than national brands and more profitable for grocers, are doing especially well. Led by chains like Trader Joe’s, Kroger, Wegmans and Safeway , grocers have expanded their store brands beyond cheap generics and simple knockoffs of Cheerios, Oreos and Coca-Cola . Now, retailers are increasingly adding premium store-brand items like organics, or creating products without direct competition. For instance, the team led by Ms. Severin, Kroger’s vice president for corporate brands, developed three-minute microwaveable pizzas as an easy snack for children when they return home from school. “This is designed for moms,” Ms. Severin said. “This is a good example where we didn’t knock off the national brand, but we thought, ‘How can we deliver what our customers are looking for?’ ” Dollar sales of store brands increased 10 percent during the 52 weeks before Nov. 1, compared with a 3 percent gain for branded products, according to the Nielsen market research company. Store brands now account for nearly 22 percent of products sold at the grocery, up from 20 percent a year ago,
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This note was uploaded on 04/24/2010 for the course MARK 3336 taught by Professor Cox during the Spring '10 term at University of Houston - Downtown.

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Store Brands Lift Grocers - Store Brands Lift Grocers Full:...

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