Companies may harm potential growth opportunities in their private label sales, according to a new study, which found that increasing the price of some private label items may strengthen the image and competitiveness of both the brands and the retailer.
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The study of more than 200 stores was based on ACNielsen marketing data, and found that there’s no single correct price gap between private label products and their branded counterparts.
The report also suggested that price management should be based on consumer demand and consumers who buy higher quantities of private label products shop the store more often, with 49% saying private label is “just as good” as national brands.
