International Retailers Own goal?
In the UK, which is battling persistently high food prices, Tesco has announced that it will be reducing the number of branded items in its more than 2,000 Express convenience stores, which will see over 50 key everyday products replaced with cheaper items, many of them private brands, and some of them less than a third of the price of the products they replace. “The move comes in response to the supermarket’s internal shopping data, which shows that price-conscious customers are increasingly turning to own-brand products,” said the retailer. Speaking of own brands, Amazon is cutting back on many of its house brands, notably in clothing and furniture, in the face of anti-trust legislation and even as brick and mortar retailers continue to eat the online megastore’s lunch; Amazon possesses only 6.4% of the online grocery market. Finally, in Brazil, the wholesale arm of Carrefour, Atacadao, has announced that it has created an incredible 15,000 jobs in the first six months of 2023, as it pursues an aggressive expansive strategy, opening 49 stores over the first half of the year. Overall, Brazil has created 1.02 million new jobs this year.
Comment: But back to private brands – we’ve just updated and revised our insightful Private Brands report, of which you can learn more about here.