Table of Contents
Executive Summary
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- Overview
- Most food and beverage shopping still happens in-store
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- Figure 1: Approach to food and beverage shopping, by age, December 2018
- Online shoppers less likely to be motivated by price
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- Figure 2: Food shopping priorities, by shopping approach, December 2018
- Most frequent online shoppers least likely to purchase store brands
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- Figure 3: Purchase of private label by category, by shopping approach, December 2018
- Online grocery shoppers a little more likely to stick with name brands
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- Figure 4: Store brand shopping behaviors, by in-store vs online, December 2018
- Online shoppers’ positive views of store brands point to further gains
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- Figure 5: Attitudes toward store brands, by shopping approach, December 2018
- Online shoppers open to a range of store-brand concepts and tactics
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- Figure 6: Factors to encourage private label purchase, by shopping approach, December 2018
- What it means
The Market – What You Need to Know
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- Private label share growth accelerates in traditional retail channels
- Broader ecommerce trends impact grocery sector
- Millennials take on more grocery shopping responsibility
- Americans are trying to eat healthier
Market Perspective
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- Private label share growth accelerates in traditional retail channels
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- Figure 7: Private label share of multi-outlet food and drink sales, 2013-18
- Walmart’s store-brand success in-store could translate to ecommerce
Market Factors
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- Broader ecommerce trends impact grocery sector
- Millennials take on more grocery shopping responsibility
- Households with children on the decline
- Most consumers report making an effort to eat healthy
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- Figure 8: Approaches to healthy eating, May 2018
- Young adults far more likely to see barriers to healthy eating
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- Figure 9: Barriers to healthy eating, by gender and age, May 2018
Key Players – What You Need to Know
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- Traditional retailers with strong store brands invest in ecommerce
- Amazon trails in grocery private label but is looking to expand
- Beyond value: leveraging store brands to meet more diverse shopper needs
What’s Happening?
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- Traditional retailers with strong store brands invest in ecommerce
- Private label an important part of Kroger’s ecommerce initiatives
- Leveraging Kroger’s direct marketing expertise
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- Figure 10: Kroger grocery delivery promotional email, January 2019
- Figure 11: Kroger Simple Truth private label promotional email, January 2019
- Walmart leverages strong store brands as it expands pickup and delivery
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- Figure 12: Walmart Grocery Pickup promotional email featuring private label products, January 2019
- Amazon trails in grocery private label but is looking to expand
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- Figure 13: Amazon Solimo promotional email, June 2018
- Beyond private label: Amazon invites brand exclusives
- Private label leader Trader Joe’s walks away from delivery
What’s Next?
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- Beyond value: leveraging store brands to meet more diverse shopper needs
- Brandless strips away brand comparisons in favor of attribute-based shopping
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- Figure 14: Attribute perceptions of Brandless cookies vs cookie category, 2018-19
The Consumer – What You Need to Know
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- Most food and beverage shopping still happens in-store
- Online shoppers less likely to be motivated by price
- Most frequent online shoppers least likely to purchase store brands
- Online grocery shoppers a little more likely to stick with name brands
- Online shoppers’ positive views of store brands point to further gains
- Online shoppers open to a range of store-brand concepts and tactics
Online Food and Beverage Shopping Overview
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- Most food and beverage shopping still happens in-store
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- Figure 15: Approach to food and beverage shopping, December 2018
- Younger adults more likely to shop for food and beverages online
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- Figure 16: Approach to food and beverage shopping, by age, December 2018
- Nearly half of in-store shoppers express interest in online shopping
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- Figure 17: Interest in online food and beverage shopping among in-store shoppers, December 2018
- Food shoppers motivated by a wide range of priorities
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- Figure 18: Food shopping priorities, December 2018
- Online shoppers less likely to be motivated by price
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- Figure 19: Food shopping priorities, by shopping approach, December 2018
- Smart phones increasingly dominant in online grocery shopping
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- Figure 20: Devices used for online food and beverage shopping, December 2018
Private Label Purchase by Category
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- Most frequent online shoppers least likely to purchase store brands
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- Figure 21: Purchase of private label by category, by shopping approach, December 2018
- Younger shoppers more inclined to purchase store brands overall
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- Figure 22: Purchase of private label by category, by age, December 2018
Private Label Purchase Locations
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- Walmart’s strength in private label in-store extends to online
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- Figure 23: Online retailers for private label purchasing, December 2018
- Traditional supermarkets still hold the edge in-store
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- Figure 24: In-store retailers for private label purchasing, December 2018
Retailer Perceptions (Correspondence Analysis)
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- Methodology
- Retailers bring distinctly different perceptions to their private labels
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- Figure 25: Correspondence analysis – Retailer perceptions, December 2018
- Figure 26: Retailer perceptions, December 2018
Private Label Shopping Behaviors – Online vs In-store
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- Online grocery shoppers a little more likely to stick with name brands
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- Figure 27: Store brand shopping behaviors in-store vs online, December 2018
- Younger online shoppers’ brand preferences less established
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- Figure 28: Store brand shopping behaviors online, by age, December 2018
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- Figure 29: Store brand shopping behaviors in-store, by age, December 2018
Private Label Shopping Attitudes
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- Online shoppers’ positive views of store brands point to further gains
- Sampling could be a key tactic both online and in-store
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- Figure 30: Attitudes toward store brands, by shopping approach, December 2018
Factors to Encourage Private Label Purchase
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- Online shoppers open to a range of store-brand concepts and tactics
- Distinctive store brands could motivate more online grocery shopping
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- Figure 31: Factors to encourage private label purchase, by shopping approach, December 2018
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
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