Aldi’s private label strategy

Related to Aldi’s BB #:116756 low-price model is its reliance on private label merchandise, a strategy increasingly attractive to consumers.

The chain is among the top purveyors of private brands among grocery retailers, earning the title of “2019 Retailer of the Year” from Store Brands magazine.

The most recent IRI Consumer Connect Survey, released in November 2018, found that 69 percent of consumers say private-label quality is equal to national brands, and 68 percent say store brands offer better value than national brands.

This perception is even stronger among millennials, with three-quarters believing the quality of private labels is as good, and 73 percent finding them better, than national brands.

Overall, IRI found that dollar sales of private-label consumer packaged goods grew 5.8 percent in 2018, compared to 1.5 percent growth for national brands.

And consumers plan to increase their spending on private labels in the next six months, the survey found, with 73 percent of millennials, 71 percent of Gen Xers, 63 percent of Baby Boomers, and 54 percent of seniors saying they would do so.

This is an excerpt from the most recent Produce Blueprints quarterly journal. Click here to read the full version.