Posted by Filipa Silverio on May 18, 2021
Retailers follow the same rules of growth as brands – the over-riding importance of buyers to growth and decline – and the ‘leaky bucket’. Recently we showed that Private Labels dropped back on average in 2020 in the big Western European countries – this trend continued in Q1 2021.
- Like any brand, Retailers grow share in a category by attracting new category shoppers and decline by losing them. Frequency has a much lesser impact. Maximise your shopper numbers across the store and the probability that they will make a purchase.
- A retailer’s shopper base is in constant churn. On average, half your category buyers this year won’t buy the category in your stores next year. These need to be replaced before you can grow!
- In the big 6 W. European countries, Private Label share was well below 2020. There are country variances with one country up, one stable but the other 4 down. However, the threat to brands remains huge as we have seen with increases outside W Europe and brand investment is key.