Store brands gain strength

The recession has hit some national brands hard, with pence-pinching consumers choosing to buy store brands instead in many categories. This has been a major trend in groceries for years, with consumer preferences shifting as buying power changes. Store brands deliver value (meaning: good quality at a reasonable price) that consumers desire when trying to stretch the household budget.

Not all store brands are alike, of course. Tesco offers a range of store-branded groceries to provide consumers with several choices of value at different levels. In particular, its Finest store brand is highly favoured, for example, which helps the retailer maintain customer loyalty and compete more effectively against its rivals.


Still, a recent survey finds that consumers simply won't give up certain national brands: Heinz Baked Beans are at the top of this list, which also includes Walkers crisps and Kellogg's cereals.

Store brands have been growing in strength within other retail categories, as well. Marks & Spencer has a new plan for strengthening the image of its store brands, which include M&S Man, Blue Harbour and Per Una (above). M&S showcases some of these brands on its Facebook site, as well as @marksandspencer, the store's Twitter account. The challenge for national brands, then, is to explain their benefits and value proposition compared with what store brands offer.