Landmark Wholesale last month saw an 11% year-on-year increase in own-brand sales. Retail controller Stuart Johnson told Convenience Store: “Improvements in the quality and the range of products available have significantly helped increase sales.
“Retailers have become more willing to stock own-brand lines than before as they realise the high-profit margins these products can deliver against the recognised brands.”
Landmark’s new Great Value Everyday initiative will draw attention to 122 own-label lines in wholesale depots and illustrate the profit that retailers can make from them.
Bestway buying manager Nick Brown added: “Own label is doing well due to an increased range of products and a quality guarantee,” he said. “Value in difficult times is also a major factor with ‘price shocker promos’ and the £1 price point being very popular.”
Retailer Chris Pollard of Barlby Village Stores in Selby, North Yorkshire, stocks Nisa-Today’s Heritage brand. He believes own-labels’ success is down to the fact that customers have realised that its quality rivals big-name brands. “Biscuits and soft drinks do really well,” he said. “A lot more customers have been trying them to save money and then they realise that they taste just as good as their usual brands.
“There may have been a stigma attached to them in the past, but now consumers know how high quality they can be.”