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As consumers seek ways to save $$, retailers have been doubling down on their private label offerings—with many expanding, revamping, or introducing new lines in recent months—but who’s rising to the top?
Recent data from Numerator for the 12 months ending June 30 reveals which private labels have been the most dominant across sector, channel, and retailer.
Aldi leads the retail pack in terms of private label sales as a percentage of overall sales, at 80%, followed by Trader Joe’s (69%). There’s a significant drop-off for third—Costco—at 34%, trailed by HEB, Sam’s Club, Walmart, and Dollar Tree.
Walmart’s private labels dominated household penetration among private label brands, with six of its own brands among the top seven. Its Great Value scored 86% household penetration, followed by Equate (75%), Mainstays (70%), Marketside (69%), Freshness Guaranteed (67%), and Pen + Gear (47%). Dollar Tree (65%), Aldi (45%), Target’s Up & Up (43%), and Costco’s Kirkland Signature (43%) rounded out the top 10.
Kroger’s Smart Way brand, which launched in fall 2022, was the fastest-growing year over year, with sales volume up 135%, followed by Dollar Tree’s B Pure (92%) and Walgreens’ Complete Home (59%).
Zoom out: Private label share has been strongest among general merchandise categories like office (38.7%), home and garden (32.5%), and home improvement (29%), per Numerator. While grocery is middling at just under 24% share, it’s achieved 100% household penetration. By retail channel, private labels in club (33.1%), office (30.3%), and mass (28%) accounted for the highest portion of sales, while beauty was the lowest, at only 2.9% (though Ulta may be pushing to grow its share with the revamped Ulta Beauty Collection it debuted last month).
Numerator also found that 43% of consumers buy private label products to save $$, while 58% believe they’re an “above-average value.” However, under a third of consumers believe these brands are as good as name brands.