how retailers promote their own brands review of private brands promotions november, 2011
TRANSCRIPT
How Retailers PromoteTheir Own BrandsReview of Private Brands PromotionsNovember, 2011
Topics Covered
• Private Brand Share of Promos Vs. Year Ago
• Private Brand Ad Support Across Departments
• Top Categories Promoting Private Brands
• Top Retailers Promoting Private Brands
• Private Brand Web Promotions
Private Brand Share of Promotions Vs. Year Ago
All De-partments
Grocery General Merchandise
HBC Non-Food Grocery
19.0%19.7% 19.7%
15.4%
17.3%18.5% 19.0%
20.3%
13.9%
15.9%Year Ago Current
Source: ECRM, 52 Weeks Ending 10/22/2011
Private Brand Share of Weighted Retail Ad Support
Private brand share of ad support is down across all departments except general merchandise.
Percent of Private Brand PromotionsBy Product Segment
Fresh Foods20.1%
Dry Grocery13.4%
Grocery Perishable10.3%
Apparel16.3%
Housewares10.8%
Other Gen Merch13.8%
Health & Beauty12.4%
Non-Food Grocery2.9%
Share of Total Private Brand Weighted Ad Support
Source: ECRM52 Weeks Ending 10/22/2011Excludes Unbranded Promos
Food segments represent 43.8% of all private brand promotions
Categories with the Most Private Brand Promos
BeddingBeef
Women's Casual ApparelCheeseEntreesChicken
Frozen Prepared FoodMen's Casual Shirts
PorkKids' Casual Apparel
Frozen SeafoodInternal Analgesics
Breads&RollsHand Tools&Accessories
Deli Meats
3.40%3.16%
2.99%2.22%
1.83%1.66%
1.30%1.29%1.27%
1.18%1.14%
1.09%1.05%1.03%1.02%
Share of Total Weighted Private Brand Circular Ads
Source: ECRM, 52 Weeks Ending 10/22/2011
Surprise! Bedding products represent 3.4% of weighted retailer ad support.
Categories With Over 90% of Ads Promoting Private Brands
Latex Gloves
Alcohol/Peroxide
Kitchen/Dining Room Furniture
Photo Processing Services
Dorm Furniture
Beach Furniture / Accessories
Vehicle Batteries
Cushions & Hammocks
Picnic, Serveware, Drinkware
Holiday Candles
100.0%
100.0%
99.3%
96.6%
96.1%
95.9%
95.8%
95.4%
94.9%
92.1%
Private Brands Share of Category Ads
Source: ECRM, 52 Weeks Ending 10/22/2011Excludes Some Smaller Categories
Excludes Ads for Unbranded Products
Categories Increasing Private Brand PromotionsYear Ago Current Share Pt
Category PB Share PB Share ChangeAnti-Diarrheal 34.2% 76.0% +41.9 ptsKids' Boots55.9% 84.9% +29.0 ptsFlower Pots & Planters 54.2% 82.8% +28.6 ptsAllergy Liquids 26.2% 54.6% +28.4 ptsInline Roller Skates & Access 23.7% 51.3% +27.6 ptsShelving & Hooks 1.2% 27.4% +26.1 ptsHand Vacs 0.0% 25.6% +25.6 ptsEye Medication/Ointment 3.7% 27.7% +24.0 ptsFree Weights 16.5% 37.3% +20.8 ptsDoll Accessories/Clothes 7.3% 26.7% +19.5 ptsTrail Mixes 32.5% 52.0% +19.4 ptsPhoto Processing Services 78.4% 96.6% +18.2 ptsLighting 61.2% 79.3% +18.1 ptsChildren's Analgesics 44.9% 62.8% +17.9 ptsFlashlights 16.1% 33.8% +17.7 pts
Source: ECRM, 52 Weeks Ending 10/22/2011Excludes Some Smaller Categories
Categories Running FewerPrivate Brand Promotions
Year Ago Current Share PtCategory PB Share PB Share ChangeFloor Mats 98.1% 67.7% -30.5 ptsTowing Accessories 64.0% 36.5% -27.4 ptsPoker Accessories 62.1% 37.4% -24.7 ptsPressure Washers 61.6% 38.2% -23.4 ptsKids' Dress Apparel 65.9% 43.2% -22.7 ptsAuto Battery Chargers/Cables79.1% 57.1% -22.0 ptsExercise Benches 31.8% 9.9% -21.9 ptsFiling Supplies/Accessories 51.1% 29.4% -21.7 ptsBelts 53.4% 32.7% -20.7 ptsKids' Furniture 84.7% 67.4% -17.3 ptsFrozen Juice 39.7% 22.6% -17.1 pts
Source: ECRM, 52 Weeks Ending 10/22/2011Excludes Some Smaller Categories
Top Supermarkets Promoting Private Brands
AldiFresh & Easy
WegmansLoblaws
Hannaford BrothersGenuardi's Family Markets
H.E.B.Shaw's Supermarket
CarrsTom Thumb
Randall's Food MarketsWinn Dixie
BI-LODominick's Finer Foods
Food BasicsPavilions
VonsHilander
Scott's Food & PharmacyHy-Vee Food Stores
Pay Less Super Markets
65.44%61.85%
53.72%27.39%
26.27%25.76%25.33%
24.37%24.12%23.99%23.97%23.60%23.45%23.33%23.32%23.21%23.21%23.05%23.02%23.01%23.01%
Private Brand Share of Total Circular Ads
Source: ECRM, 52 Weeks Ending 10/29/2011
Aldi, Fresh & Easy, and Wegmans lead all retailers in private brand promotions.
Supermarkets Committed to Traditional Brands
SunMart Foods
Econofoods
Met Foods
D'Agostino Supermarkets
Hillers
Marc Glassman
Strack & Van Til
Ultra Foods
Magruder's
ValuMarket
0.08%
0.09%
0.32%
0.40%
0.42%
0.54%
1.03%
1.08%
2.23%
2.64%
Private Brand Share of Total Circular Ads
Many smaller grocers choose promote traditional brands over their own private brands.
Source: ECRM, 52 Weeks Ending 10/29/2011
Food Categories withHighest Private Brand Share of Promotions
Dry Beans
Frozen Fruit
Salads
Carrots
Sandwich & Hot Dog Buns
Sugar&Substitutes
Non-Dairy Creamers/Syrups
Trail Mixes
Eggs
RTE Deli Salads
Toaster Pastries
Milk
87.8%
77.1%
65.1%
55.9%
53.1%
52.6%
52.5%
52.0%
51.4%
51.4%
50.8%
50.7%
Private Brands Share of Category Ads
Source: ECRM, 52 Weeks Ending 10/22/2011Excludes Some Smaller Categories
Non-Food Grocery Categories withHighest Private Brand Share of Promotions
Coffee Filters
Picnic Tableware
Trash Bags
Food Wraps/Bags
Bleach
Napkins
Paper Towels
Facial Tissue
Toilet Tissue
Scrubbers/Sponges
Household Cleaners
Fabric Softeners
Detergents
50.0%47.3%
38.4%32.3%
28.9%25.6%
19.6%15.7%15.6%15.1%
8.7%6.8%6.4%
Private Brands Share of Category Ads
Source: ECRM, 52 Weeks Ending 10/22/2011Excludes Some Smaller Categories
Top Retailers Promoting Private Brand Grocery
Aldi
Fresh & Easy
Wegmans
Shoppers Drug Mart
Loblaws
Genuardi's Family Markets
Hannaford Brothers
H.E.B.
Carrs
Tom Thumb
Randall's Food Markets
Hilander
66.5%
63.9%
59.7%
34.4%
28.9%
28.0%
27.5%
26.7%
26.0%
25.8%
25.8%
25.5%
Private Brand % of Grocery Ads
Source: ECRM, 52 Weeks Ending 10/29/2011
Top Drug Chains Promoting Private Brands
Shoppers Drug Mart
Kerr Drug
Walgreens
Rite Aid
Kinney Drugs
Rexall
Pharma Plus
CVS
Duane Reade
Hi-School Pharmacy
Thrifty White Drug Stores
22.4%
21.2%
16.2%
15.7%
14.1%
13.0%
12.9%
12.8%
10.9%
9.9%
9.3%
Private Brand Share of Total Circular Ads
Source: ECRM, 52 Weeks Ending 10/29/2011
HBC Categories withHighest Private Brand Share of Promotions
Latex Gloves
Alcohol/Peroxide
Polish Removers
Medical Compliance
Epsom Salts
Cosmetic Applicators/Removers
Anti-Diarrheal
Reading Glass Accessories
Children's Analgesics
Motion Sickness
Vaporizers/Humidifiers
Allergy Liquids
Hand Sanitizers
100.0%100.0%
89.4%87.6%
84.1%80.3%
76.0%66.0%
62.8%57.5%
55.9%54.6%53.6%
Private Brands Share of Category Ads
Source: ECRM, 52 Weeks Ending 10/22/2011Excludes Some Smaller Categories
Top Retailers Promoting Private Brand HBC
Food City Supermarkets
Thrifty White Drug Stores
Marsh Supermarkets
Thriftway (Seattle)
Adams Super Food Stores
Super 1 Foods
Thriftway (Kansas City)
Roche Bros
Sack 'N Save
Top Food & Drug
Foodtown
BI-LO
33.3%
32.4%
31.9%
30.8%
30.5%
30.0%
29.8%
29.8%
29.0%
28.9%
28.6%
28.1%
Private Brand % of HBC Ads
Source: ECRM, 52 Weeks Ending 10/29/2011
Private Brand PromotionsAcross Mass Merchandisers
Kmart
Zellers
Target Stores
Meijer
Walmart Canada
Shopko Stores
Walmart-US
Pamida
Big Lots
21.6%
17.8%
16.6%
14.8%
13.5%
12.9%
8.2%
1.2%
0.1%
Private Brand Share of Total Circular Ads
Source: ECRM, 52 Weeks Ending 10/29/2011
General Merchandise Categories withHighest Private Brand Share of Promotions
Kitchen&Dining Room Furniture
Photo Processing Services
Dorm Furniture
Beach Furniture & Accessories
Vehicle Batteries
Cushions&Hammocks
Picnic, Serveware, Drinkware
Holiday Candles
Desk Accessories
Braking Systems
Rugs
Wall Art
99.3%
96.6%
96.1%
95.9%
95.8%
95.4%
94.9%
92.1%
88.8%
88.5%
88.1%
87.0%
Private Brands Share of Category Ads
Source: ECRM, 52 Weeks Ending 10/22/2011Excludes Some Smaller Categories
Top Retailers Promoting Private BrandGeneral Merchandise
Aldi
Food Basics
Super 1 Foods
Thriftway (Kansas City)
Ingles Markets
Lucky Supermarkets
Save Mart
Hornbachers Foods
H.E.B.
Loblaws
Kmart
60.7%
47.5%
37.5%
36.4%
35.3%
31.7%
29.7%
28.7%
28.6%
26.8%
26.7%
Private Brand % of Gen Merch Ads
Source: ECRM, 52 Weeks Ending 10/29/2011
Private Brand Share of Web PromotionsAcross Key Retailers
% Private Brands Total Web PromosSupermarkets
Kroger Stores 0.1% 945Albertson's (SV) 0.0% 678Food Lion0.0% 1838H.E.B. 0.0% 862Publix 0.0% 485Safeway 0.0% 3190ShopRite 0.0% 593
Drug ChainsRite Aid 31.6% 193Walgreens 13.0% 1258CVS 7.3% 977
Mass MerchandisersKmart 25.8% 814Target Stores 17.6% 2392Walmart-US 2.0% 1095Meijer 0.9% 216 Source: ECRM
13 Weeks Ending 10/29/11Select Retailers
Leading grocers run very few web promotions for private brands.
Top Categories for Private BrandWeb Promotions
Cosmetic Accessories
Photo
Domestics
Women's Apparel
Kids' Apparel
Diabetes Care
Shoes
Diagnostics
Cough/Cold
60.6%
51.3%
44.2%
43.7%
39.0%
29.7%
29.2%
24.7%
22.9%
Private Brand % of Web Promotions
Source: ECRM13 Weeks Ending 10/29/11Select Retailers
Methodology
• Retail ad support measured by number of ad blocks in retailer print circulars. Ad share is weighted by retailer size.
• Ad counts include branded & private label products, but not unbranded.• Ad Circular Data Includes U.S. & Canadian Retailers
ECRM’s MarketGate Ad ComparisonsWeb Site: www.AdCompare.MarketGate.comStudies on Retail Promotions: www.PromotionalReflections.com
Contacts:Scott Whalley 847-482-1793 [email protected] Pirovano 440-528-0418 [email protected]