As the high cost of food bites into American wallets, consumers are increasingly turning to store-brand goods as a cost-saving measure. This shift is happening as private labels, or products sold under a retail banner and not brand name, become significantly better bargains, according to the Bank of America. The bank noted an average cost saving of $2 on store-brand items compared to their branded alternatives. This consumer behavior change has been influenced by price increases across a range of products, from eggs to meat. Faced with this reality, it's becoming essential for shoppers to find discounts, resulting in a turn towards private labels and promotions. Retailers are actively taking advantage of this trend. Albertsons, for example, is expanding their private label offerings with products such as marinated meats and a new line of desserts. The company's CFO, Sharon McCollam, hinted at the potential addition of more private label products during a recent conference call. Casey’s General Stores also plans to increase its private label selection with a variety of budget and high-end options. While the company has found success with a "one-size-fits-all" strategy, the CEO, Darren Rebelez, expressed interest in shifting towards a tiered approach. This rising demand for private label goods has caught the attention of manufacturers. Conagra CEO Sean Connolly acknowledged the changing landscape, stating the company is keeping a close eye on the competitiveness of its prices, particularly for Hunt’s tomato products, whipped toppings, and cooking sprays. As tariffs have driven up the production cost, Conagra is considering price raises for some canned goods. Connolly highlighted the importance of the company's performance in an increasingly competitive market.
Americans Turn to Store-Brand Goods Amid Rising Costs
Due to high product prices, U.S. consumers increasingly embrace retail chain private labels in search for better deals.
