Tag Archives: supermarket brand equity

Supermarket Customer Loyalty & Drive-by Draw

A recent article in the Sun Sentinel newspaper asked and tried to answer what made Trader Joe’s so special that people would drive by many other stores just to shop there. 

The most often heard reactions to Trader Joe’s are affordable, fun, adventurous and quirky.  About 80% of their products are private label, so customers know when they shop there that they aren’t going to find Thomas’ English Muffins or Hellman’s mayonnaise.  Still, the customers come from all over.  Why?  Why is there often huge excitement when a new Trader Joe’s opens? 

Locally, we have also seen the frenzy when announcements of a Whole Foods or a Wegmans announce that a new store is coming. 

What makes these stores so special?  What are other stores doing to compete?  How many of your customers drive by other stores to shop with you?  Why you? Why not you?

Private Label Sales Growth for Some Supermarkets?

In a recent post we commented on the fact that overall,  growth in private label sales has slowed and that the overall market for  private label is stagnant.  

But we know  that some retailers are having lots more success than others and that while  some retailers are slowing, others are having great success.  

Let’s take a look at Kroger and their private
label brand Simply Truth and Simply Truth Organic, which were launched in
2012.
  In a recent Food Business News article, it was reported that Kroger expects  this private label brand to surpass $1 Billion in annual sales by the end of 2014!  It would then follow that in Kroger stores, we should expect to see  more shelf space allocated to this group of private label products, and with this  kind of success, we know success is possible.  

For those retailers that are not experiencing the success of private
label, why not?
  Economic conditions are  likely never going to be any better for private label than they have over the  past few years.