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Inflation pushes consumers to consider private labels over name brands
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Shoppers are reaching for more in-house brands to save money as inflation surged to a new four-decade high in June.
"Inflation on consumer products has opened the door for private labels to gain consumer awareness and engagement due to higher prices and shrunken sizes," Mark Kohlenberg told FOX Business. Kohlenberg is the CEO and founder of luxury men’s footwear and accessories brands Moral Code and Milwaukee Boot Company.
As a result, "it has suddenly enabled consumers that would previously only consider branded products — out of sheer habit or a belief that branded products were better — to now expand their consideration set and now include private label products within their buying patterns," he added.
WHY IS INFLATION STILL SO HIGH, AND WHEN WILL IT START TO COOL?
Gristedes & D'Agostino Supermarkets Chief Operating Officer Joe Parisi told FOX Business that many bigger chains have seen growth in their private labels in recent months as buyers look for more ways to cut back on spending.
"As grocery inflation continues customers are looking to private label versus brand names because they are looking for savings in price," said the head of New York City's largest grocery chain.