News & Media

Retailers really focusing on their brands
December 10, 2013
Source: PLMA E-Scanner

PLMA’s biggest ever Chicago Trade Show is history, but the coming year is likely to bring even more success for store brands, speakers at the event predicted. “Private brand focus is unprecedented, and best-in-class retailers are investing in brand management activities like their branded peers,” Todd Hale, Senior Vice President, Nielsen, told a seminar session. Store brand sales reached $111.6 billion for the 52-week period ending August 31, a level that is 18.5% greater than for calendar 2009. National brand sales during that period were $529.4 billion, up only 8% since 2009, according to Nielsen sales data.

At the Salute to Excellence Breakfast, Doug Rauch, former President of Trade Joe’s, recalled that the retailer found success by making sure every product it carries has a “story to tell.” When the retailer decided to commit to this strategy years ago the initial result in a sharp reduction in the number of SKUs that were carried. While the move was controversial at the time it has proved to be a driving force behind Trader Joe’s subsequent success.

On the Trade Show floor, there were a record 1,230 exhibitors and 2,534 booths. The show’s international presence continues to grow. There were 340 exhibitors from 35 countries outside the U.S. represented on the exhibition floor. Nearly 10,000 visitors attended the event, an increase of more than 10% of the prior year.