Per Catalina Study, Retailer Private Brands Will Lose Gains Made During The Pandemic Without Strategy Shifts
Retailer Private Brands have an urgent opportunity to keep some of the 75 million new shoppers they gained during the pandemic. But that window is closing quickly as national brands begin investing their promotional dollars again(Catalina ).
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While 30 million shoppers made repeat purchases, trends from Catalina Buyer Intelligence Database show that overall Retailer Private Brands sales share gains have disappeared.
According to Wes Bean, senior vice president of Catalina’s U.S. retail network: “The pandemic created a decade’s worth of trial in a few weeks. As the predicted recession sets in, Retailer Private Brands need to start behaving like national brands, leaning into marketing across channels to promote the value of these products and the innovative portfolios they’ve developed. One-off campaigns won’t win the day.”
Specific types of shoppers with whom Retail Private Brands have had big wins during the pandemic include:
- Families with young children
- Bakers and breakfast makers
- Natural and organic seekers
Yet even these types of shoppers are gravitating back to some national brand products, like flour and pancake mixes. The biggest opportunity lies with the natural and organic seekers who are changing their overall buying patterns. Catalina data shows many “strong” and “very strong” seekers have been attracted to private brands for the first time.
“New shopping habits and tighter wallets require closer integration with an investment in marketing communication to drive loyalty with these new private brand shoppers,” Bean said. “This isn’t a case of pulling out the 2008 Recession playbook and hitting repeat.”
Catalina is the market leader in shopper intelligence and highly targeted in-store and digital media that personalizes the shopper journey. Powered by the world’s richest real-time shopper database, Catalina helps CPG brands, retailers and agencies optimize every stage of media planning, execution and measurement to deliver $6.1 billion in consumer value annually.
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