PLMA: Total 2016 private label sales reaches above $150 billion

NEW YORK — The year 2016 proved to be a banner year for owned brands, with private-label dollar volume increasing by 4.4% to $49.6 billion across mass merchandisers, club channel and dollar-store operators for the 52 weeks ending Dec. 24, according to Nielsen. That resulted in a 50 basis point increase in market share to 16.6%.

"These gains are especially important because the total channel sales for mass merchandisers, clubs and dollar stores are climbing at a much greater rate than in the supermarket channel," the Private Label Manufacturers Association noted. "Dollar volume sales for Nielsen’s all retail outlets combined segment, which also includes drug chains, outpaced the supermarkets-only measure, increasing 0.8% compared to barely 0.1% growth for supermarkets."

Store brands’ market share declined in the slow-growth supermarket channel — measured at 18.4% dollar share and 22.3% unit share — as well as in Nielsen’s all outlets combined sector.

While Nielsen reports total private-label sales for 2016 at $118 billion, these results do not include sales from some of the biggest store-brand retailers in the country, such as Costco, Aldi and Trader Joe’s, PLMA noted. Estimates of their private-label sales would add $35 billion to the total and push the total U.S. private-label market to more than $150 billion.

 

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