What's in store for private brands?

Private brands continue to sell well as bargain-hunting buyers seek out savings, not just in groceries but also in other categories. Already, grocery-store brands account for 45% of all UK supermarket sales. Looking ahead, one survey found that shoppers will increase their purchases of private brands by 22% during 2013.

Not surprisingly, stores are putting marketing power behind their private brands, because promotions add visibility and highlight the value benefits.

• Tesco reintroduced its range of private-brand baby products as 'Tesco Loves Baby'. The idea is to encourage shopper loyalty among new parents. Think about the extra revenue and profits if new parents adopt Tesco brands for baby's early years, and buy extras while in the store. Plus the parents club will provide input to help Tesco improve its products.
• Waitrose's website features its 'essential' range of 1,500 products, everything from pet food and pasta to coffee and crisps. The retailer describes its private brand this way: 'At the heart of our essential range is the belief that you shouldn’t have to compromise your standards, even on the everyday items you depend on'. (Waitrose has 93,000 Facebook likes.)
• Morrisons is launching a new private brand of children's clothing and 'essentials' clothing for everyone. Margins on such products tend to be better than the margins on food, so this move is expected to help the bottom line if customers buy and clothing revenue is strong.
• Asda was a pioneer of private brand fashions in its stores--its George brand appears on everything from baby clothes and blazers to shoes and socks. The George Style blog keeps brand fans updated on the latest styles. Of course George has more than 120,000 Facebook likes.