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    Private Label Brands Continue to Post Gains Across Major Channels

    Over past decade, annual sales of store brands increased by 40 percent in supermarkets; 96 percent in drugstores.

    NEW YORK -- Store brands wrapped up a decade of strong growth, posting sales increases across all three major retail channels in 2010, according to the latest Private Label Yearbook published by the Private Label Manufacturers Association (PLMA).

    The 2011 PLMA Yearbook tracks private label sales and market share trends based on data from The Nielsen Co. , for the 52 weeks ending Dec. 25, 2010. Total private label sales in U.S. supermarkets, drugstores and mass merchandisers including Walmart, rose nearly 2 percent in 2010, while dollar share advanced by almost half a point to reach a new record level. Overall, sales were at $88.5 billion.

    An estimated $15 billion to $20 billion in additional store brand food and non-food grocery sales in channels not included in Nielsen's databases (such as club stores, limited-assortment stores, convenience stores and dollar stores) likely would have produced a grand total exceeding $100 billion in 2010, PLMA noted.

    Broken down, 2010 store brand sales saw gains of more than 2 percent in U.S. supermarkets and nearly 5 percent in drugstore chains, according to PLMA. Over the past decade, annual sales of store brand products increased by 40 percent in supermarkets and 96 percent in drugstores.

    PLMA also reported that:

    • In supermarkets, store brand dollar sales increased by $1.2 billion and accounted for 100 percent of the channel's growth, offsetting a national brand dollar sales drop of $149 million. Private label unit sales were essentially flat, while national brand unit sales grew 1 percent.
    • In drugstores, store brand dollar sales increased by $300 million, comprising 60 percent of all incremental revenue in the channel. Private label unit sales were off marginally, and national brand unit sales were even.
    • In total outlets, private label dollar sales were up $1.5 billion, while national brand dollar sales were down $4.6 billion. Store brand unit sales dropped 0.9 percent, and national brand unit sales fell 0.6 percent.

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