Leo D'Angelo Fisher Columnist

Leo covers management and leadership issues, business trends and corporate strategy. He is a former senior business writer at The Bulletin and a former host of The Business Hour on 3AW.

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Private label Australia

Published 09 May 2012 14:29, Updated 09 May 2012 14:30

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  • Shoppers are spending 73 per cent more on private label products – brands owned by retailers – than they were five years ago, which is $1 of every $4 spent on packaged grocery products.

  • Private label goods have a 25 per cent share of the grocery market.
  • Researcher Nielsen expects private label products will grow to 40 per cent of grocery spending by 2015. IBISWorld has more modest expectations: it forecasts a 30 per cent share by 2016.
  • As a proportion of sales, Coles sold more private label products than Woolworths in 2011: 23 per cent and 18 per cent respectively.

  • German-based budget supermarket chain Aldi has just 5 per cent of the grocery market but it can teach Coles and Woolworths a thing or two about private label products: 95 per cent of products stocked on Aldi shelves are private label, often specially contracted “pseudo brands” that consumers tend to mistake for European brands.

  • The Australian Food and Grocery Council wants legislation to limit private label goods to 30 per cent of space on supermarket shelves.

Sources: Nielsen, IBISWorld, BRW

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