Private Label Package Design Builds Loyalty for Retailers

Thanks to their increasing allure for shoppers, private-label brands—a.k.a. “house, “store,” and “own” brands—have become big business for retailers. The Private Label Manufacturers Association (PLMA [New York, NY]) says that over the past decade, annual sales of private-label products have risen by 40% in supermarkets and by 96% in drug chains,reaching more than $100 billion in 2010.
Private-label brands are the stars of the show—and prime moneymakers on the shelves—at Sunflower Farmers Market (Boulder, CO, Phoenix, AZ), a network of full-service grocery stores in the Southwest. “Whenever we introduce a private-label item, it skyrockets straight to the top of its category,” says Daniel Sinclair, director of private label for the 36-store chain, where the inventory includes a mix of house and national brands.

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