The Real Economics of Store Brands
Wisner Marketing is in the process of completing a whitepaper for the Private Label Manufacturers Association (PLMA) titled “The Real Economics of Store Brands.” Just about everyone understands the core premise behind store brands – higher gross margins and higher per unit profits. However, many of the other economic attributes (including the cost of managing a store brand program) have received very little attention. This whitepaper addresses research that explores consumer savings, the residual sales and margins as those savings get re-spent, the impact on retailer cash flow and capital utilization, the overall efficiency of store brands relative to national brands, their impact on trade promotion dollars, and customer loyalty. The paper looks at how all of these collectively impact the retailer’s bottom line. A release date for the paper has not yet been announced.