2010 to be “breakout year” for store brands, analyst says
While some pundits are predicting a big brand comeback this year, one highly respected retail analyst foresees even more big market share gains for private label.

1/1/2010
Source: PLMA E-Scanner

While some pundits are predicting a big brand comeback this year, one highly respected retail analyst foresees even more big market share gains for private label.

Deborah Weinswig, an analyst at Citigroup, predicts that 2010 will be a “breakout year” for private label growth. “We believe that there will be another growth spurt in 2010 for private label and exclusive products as retailers cater to the growing demand for these products and better merchandise these products in-store to appeal to the consumer,” she wrote in a report.

Weinswig believes food retailers experienced a “modern-day price war” in 2009 and in 2010 an “old-time price war” will break out, led by big price cuts at Wal-Mart. “We view this move as a game-changer in the food retail industry in 2010,” she wrote. “As a result, there likely will be further price investments from food retailers and gross margin pressure as they scramble to match Wal-Mart’s aggressive pricing in 2010.”

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