Although retailers have made notable gains in overall market share in recent years, there are opportunities to widen their portion. Circana’s insights point to runways for additional growth across food and nonfood categories and retail channel type.

Of course, price has always been a purchase driver for private label products. During a period of still-elevated inflation and macroeconomic uncertainty, retailers can provide private label solutions for shoppers who continue to look for ways to save money. Even if they aren’t necessarily looking for substitutes, consumers can discover private label products that stand out on their own as something different yet budget friendly. This is true for retailers that have historically done well with store brands, such as club stores and value stores, and for banners that are investing more in these collections.

Consumers’ quest for value may have been a catalyst for the acceleration of private label, but innovations in products, packaging, and promotions have transformed store brands. Circana’s recent data shows that shoppers are drawn to interesting flavors, forms,and functional benefits offered by retailers’ private label offerings.

Retailers and their supplier partners continue to be creative and thoughtful in launching not only new products, but also new tiers of products. Premium portfolios have performed well for many retailers, as have no-frills or value-centric lines that appeal to budget-minded shoppers.

Retailers can use data to understand their shoppers’ preferences and habits to determine which products and tiers would work best for their strengths and base. In some cases, a retailer may only offer one master brand, while another retailer may find success with two or three private label collections, depending on their goals, capabilities, and audience.

Shoppers’ affinity for private label products can be amplified through loyalty programs that provide deals and rewards. Those same loyalty programs are beneficial for retailers, too, who can track purchase habits, including how their store brand stacks up against national brands and when and how new private label items resonate with customers.

Shoppers are accustomed to making side-by-side comparisons of private and branded products at the point of sale. Such behavior was especially true when store brands largely tried to emulate the look and feel of their branded counterparts, down to product appearance and package colors and graphics.

Today, many retailers are spotlighting their own brands in end caps and other displays that that spotlight their private label lines. A growing number of regional grocers, for example, have dedicated areas that showcase their premium store brand assortment. Club stores and value chains, particularly those that have built a reputation on their value-priced private label products, also build their store brand equity through high-visibility placement, both in store and online, and in supporting promotions.

Although Circana’s private label insights indicate that promotion activity among store brands slightly trails national or name brands, more retailers are investing in promotions that highlight their own offerings. Here, too, there are opportunities to increase awareness of private label collections and entice shoppers to discover new products under their store label. For instance, stores can leverage their social and digital media programs to amplify their distinctive brands.

Retailers should also keep a keen eye on technologies poised to change the competitive landscape for both branded and private label assortments. The acceleration of agentic commerce is one significant development that will redefine how and what shoppers buy. Retailers will want to have their brands suggested to customers who are seeking out certain products online and who might not even visit a physical store to compare products on the shelf.