#United States #consumer behavior #Private Label #Glen Allen #RDSolutions

The Rise of Private Labels Among Shoppers

Recent findings indicate a remarkable change in shopping behaviors across the United States. A survey conducted by RDSolutions gathered insights from 250 verified U.S. consumers, revealing that an astounding 86% of shoppers have chosen private label products over national brands for at least some of their grocery needs. This trend is largely driven by economic stressors, including rising grocery prices and concerns about tariffs.

Economic Factors Driving Change

As inflation continues to impact household budgets, price sensitivity has become a significant factor in purchasing decisions. The survey found that 87% of participants rated price a 6 or higher on a 10-point scale when selecting where to shop. Notably, 62% of consumers expressed that they would consider switching stores if they feel that prices at their current locations are too high. These statistics underscore the critical role that pricing plays in retailer loyalty and consumer choice.

Lee Kallman, Chief Commercial Officer at RDSolutions, stated, “The findings highlight just how central price has become to shopper loyalty—both to retailers and brands. Economic headwinds like inflation and tariffs are accelerating changes in consumer behavior.” Thus, retailers and manufacturers who fail to adapt to this shift risk losing market share.

Understanding Shopper Preferences

The survey showcased how consumers are altering their buying patterns in response to price increases. Approximately 42% of shoppers reported opting for less expensive alternatives, while 20% admitted to skipping certain items altogether. Notably, only 11% of respondents indicated that they remain loyal to their usual brands irrespective of price fluctuations. The push for private labels is evident with 75% of those purchasing them asserting that store-brand products are of equal or superior quality compared to their name-brand counterparts.

When asked to identify what constitutes a 'good value' for food items, shoppers prioritized factors such as:

• - Price compared to similar products (36.8%)
• - Size or quantity (27.6%)
• - Brand reputation (12.8%)
• - Discount offers (10.8%)
• - Organic/natural vs. conventional (10%)

This data reveals that shoppers are now purchasing with a sharper focus on value, driven significantly by the rising cost of living.

Additionally, 65% of participants noted that promotions like buy-one-get-one-free (BOGO) deals enhance their perception of value, and 28% reported buying fewer items overall due to price increases.

Conclusion: Shoppers’ Perception of Market Conditions

The survey respondents also believes that economic conditions directly affect food prices in their local areas, with 84% affirming this view. This perception is vital for retailers understanding their market and adjusting strategies accordingly.

During the recent webinar, “Shoppers' Perceptual Filters and Their Effect on Food Pricing,” RDSolutions experts discussed these findings and their implications for the retail industry. The session highlighted how brands must innovate and adapt their pricing strategies to meet evolving consumer preferences effectively.

Learn More

For those interested in delving deeper into these insights, RDSolutions provides the full survey findings that touch upon consumer price sensitivity, behaviors regarding store-switching, and insights into the growing popularity of private labels. This analysis serves as a wake-up call for retailers and brands to rethink their strategies in light of changing consumer habits amidst rising economic pressures.

RDSolutions, a prominent retail intelligence firm headquartered in Richmond, Virginia, specializes in assisting brands and retailers in turning data into actionable strategies. With over 35 years of industry experience, they continue to analyze and relay critical market trends to help clients navigate today's challenging retail landscape.