In the last 52 weeks, club stores and supermarkets significantly increased their private brand market share in both dollar and unit metrics. This growth illustrates a strategic shift in consumer purchasing habits within these retail formats, impacting how products reach shoppers.
However, this robust expansion in club stores and supermarkets stands in stark contrast to simultaneous declines. Private brand unit and sales share decreased in mass retailers, dollar stores, and drug chains, according to IndexBox. This divergence reveals a complex and evolving landscape where private labels gain significant ground in some sectors while struggling in others.
Retailers that strategically invest in and differentiate their private label offerings, particularly in the grocery and club sectors, are likely to capture a larger share of consumer spending and improve profitability. Conversely, those neglecting this trend risk losing ground to more agile competitors.
The Growing Power of Private Labels
- 43% of consumers surveyed intend to purchase private labels more often, compared to 27% for national brands, according to IndexBox.
Consumer intent demonstrates that private labels are not a niche phenomenon. They represent a significant and growing force in consumer purchasing decisions, signaling a shift in how shoppers perceive value and quality across different retail environments.
Where Private Brands Are Winning Big
Club retailers saw a 0.7 percentage point rise in both dollar and unit metrics for private brands, according to IndexBox. The focused growth highlights the effectiveness of targeted private label strategies within these channels.
Kroger's Our Brands portfolio gained share and outpaced national brands by 175 basis points in the first quarter, according to TradingView. Specific gains in club retailers and Kroger's outperformance against national brands highlight the strategic advantage private labels offer in key grocery and club sectors. Based on IndexBox data showing private brands gaining significant share in club stores and supermarkets, national brands are facing an existential threat in these channels, as retailers are actively cultivating their own brands as primary differentiators.
Retailers Double Down on Own Brands
UNFI is expanding its private brands to help retailers boost holiday sales, according to Store Brands. The move by a major distributor underscores the strategic importance of private labels in driving overall business growth and sales for retailers.
Retailers and distributors are actively supporting private label expansion as a growth strategy, viewing these brands not just as cost-savers but as key competitive assets. The stark contrast in private label performance across retail formats, as highlighted by IndexBox, suggests that retailers failing to invest in a compelling private brand strategy risk losing market share to competitors who are successfully positioning their own labels as premium value.
The Road Ahead for Private Labels
The continued divergence in private label performance suggests that strategic investment and tailored offerings will be crucial for future success. This trend could reshape market leadership across retail channels. Kroger's 'Our Brands' portfolio outpacing national brands by 175 basis points indicates that a well-executed private label strategy can not only compete but actively dominate national brands, forcing CPG companies to rethink their channel-specific strategies. By late 2026, national brands in club and supermarket channels will face increased pressure to innovate or risk further market share erosion as retailers double down on their successful private label strategies.
Your Questions About Private Brands, Answered
What are the key drivers of private label growth in 2026?
Consumers are increasingly seeking both value and perceived quality, driving private label growth. Retailers gain greater control over their supply chains and pricing, allowing them to offer competitive alternatives to national brands. This strategic positioning caters to evolving shopper preferences for store-specific products.
How are supermarkets differentiating their private brands in 2026?
Supermarkets differentiate their private brands by focusing on premiumization and innovation. They invest in creating unique product lines, often in organic, specialty, or ready-to-eat categories, that offer a distinct quality or experience not found in national brands. This strategy builds brand loyalty and enhances the store's overall image.
What is the future outlook for private label products in club stores?
The future outlook for private label products in club stores remains strong, driven by their ability to offer value in bulk quantities. Continued investment in product development and quality assurance will likely solidify their position. This growth will further challenge national brands, compelling them to adapt their offerings or risk ceding more shelf space in these channels.
