Dive Brief:
- Some 60% of Americans surveyed said they were more likely to shop at Whole Foods as a result of its store brands.
- Costco came in second in the survey, with 57%. A&P and Ahold were at the bottom, with only 29% of respondents saying private labels brought them into the store.
- In terms of overall satisfaction, Costco came out on top with 63% of buyers saying they were satisfied with their private label purchases. Publix shoppers were the second-most-satisfied, at 60%..
Dive Insight:
There's nothing surprising in this survey, but there's plenty for grocers to learn from—particularly about the need to put serious thought into the marketing of store brands.
It seems to us that Whole Foods has done a better job than any other retailer in creating private labels that are aimed at the store's core audience and reflect the store's core message. We shop at Whole Foods all the time. And everyone in the place has at least one "365 Everyday Value" item in their cart. Costco does something similar in a much tougher situation. Costco has to get its "Kirkland Signature" brand to represent value in a store where everything is cheaper than you expect. Our hats are off to Whole Foods and Costco.