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Proliferation of private labels in the groceries sector: The impact on category performance

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  • Olbrich, Rainer
  • Grewe, Gundula

Abstract

In consumer goods retailing, an increase in private labels on offer has been evident for several years now. Therefore, the purpose of this paper is to analyse how retailer assortment-policy measures and pricing-policy measures to promote the sales of private labels will affect the level of category performance. The findings, based upon POS scanning data from the German groceries sector, are at first view surprising since extending the range of private labels and reducing that of national brands does not lead to greater category performance. The paper offers important retailing, managerial and welfare economics implications of the findings.

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  • Olbrich, Rainer & Grewe, Gundula, 2013. "Proliferation of private labels in the groceries sector: The impact on category performance," Journal of Retailing and Consumer Services, Elsevier, vol. 20(2), pages 147-153.
    • Handle: RePEc:eee:joreco:v:20:y:2013:i:2:p:147-153
    DOI: 10.1016/j.jretconser.2012.10.004
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    Cited by:

    1. Zaffou, Madiha & Campbell, Benjamin & Rabinowitz, Adam, 2016. "Spillover Effect of Participation in Women, Infant and Children (WIC) Program on Consumer’s Purchasing Behavior of Private Label Goods," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230100, Southern Agricultural Economics Association.
    2. Rossi, Patricia & Borges, Adilson & Bakpayev, Marat, 2015. "Private labels versus national brands: The effects of branding on sensory perceptions and purchase intentions," Journal of Retailing and Consumer Services, Elsevier, vol. 27(C), pages 74-79.
    3. Anselmsson, Johan & Bondesson, Niklas, 2015. "Brand value chain in practise; the relationship between mindset and market performance metrics: A study of the Swedish market for FMCG," Journal of Retailing and Consumer Services, Elsevier, vol. 25(C), pages 58-70.
    4. Ratula Chakraborty, 2018. "Do Retailers Manipulate Prices to Favour Private Label over Brands?," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2018-02, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    5. Holzer, Patrick Sebastian, 2020. "The effect of time-varying factors on promotional activity in the German milk market," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    6. Rainer Olbrich & Hans Christian Jansen & Benedikt Teller, 2016. "Quantifying Anti-Consumption of Private Labels and National Brands: Impacts of Poor Test Ratings on Consumer Purchases," Journal of Consumer Affairs, Wiley Blackwell, vol. 50(1), pages 145-165, March.
    7. Hoskins, Jake D., 2016. "Offering value and capturing surplus: A strategy for private label sales in a new customer loyalty building scenario," Journal of Retailing and Consumer Services, Elsevier, vol. 28(C), pages 274-280.
    8. Olbrich, Rainer & Jansen, Hans Christian & Hundt, Michael, 2017. "Effects of pricing strategies and product quality on private label and national brand performance," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 294-301.
    9. Rainer Olbrich & Michael Hundt & Hans Christian Jansen, 2016. "Proliferation of Private Labels in Food Retailing: A Literature Overview," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 8(6), pages 63-76, December.

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