Private label woes
Inside Retail published an article about the proliferation of private label products. What we found interesting was the statistic that 85% of retailers surveyed stated that their main driver behind the introduction of private label products is the need to improve margins. This confirms our earlier observations that Coles’ claims that its ongoing shift towards private label is in response to customer demand doesn’t agree with facts. There is no doubt that the rush to private labels undermines established brands and according to the article, discourages suppliers from innovation, jeopardises the livelihoods of smaller, independent suppliers, and ultimately results in less choice for customers.