According to a new report, supermarkets have a great opportunity to increase the popularity of their private label brands as consumers become more familiar with them. Brands like H-E-B, Costco’s Kirkland Signature, 365 by Whole Foods Market, Trader Joe’s, and Sam’s Club’s Member’s Mark are among the most loved private brands, offering good value and quality, as per Bain & Company’s survey of over 20,000 U.S. consumers.
Trader Joe’s, H-E-B, and Kirkland Signature received high ratings in both center store and perishables categories, with Amazon Fresh excelling in center store products and Publix and 365 shining in perishables. These beloved private labels outperformed national brands and other store brands in terms of quality, taste, value, and consumer sentiment.
“Most loved” private brands have higher consumer awareness compared to other store brands, driving this awareness through consistent marketing that emphasizes their value propositions. Grocers like Trader Joe’s, H-E-B, and Kirkland Signature leverage unique marketing strategies to connect with consumers and build brand loyalty.
Building customer advocacy is crucial for brand success as it leads to increased loyalty and market share. While U.S. consumers already view private brands as offering better value, grocers can enhance perceptions of uniqueness, quality, and trustworthiness to compete with name brands.
The winter holiday season presents an ideal opportunity for supermarkets to showcase their quality private brands and strengthen consumer loyalty, aiming to become a top choice for shoppers. As retailers like Target, Grocery Outlet, and Kroger introduce new private label brands, there is still room for growth in private brand penetration in the U.S., currently lagging behind European grocers.