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.

Supermarket fashion: Morrisons joins the trend

Shop for tops and socks where you buy tomatoes and soups? Yes, the market for clothing sold in supermarkets is expanding, year by year, both in stores and online.

Morrisons has just announced its plan for the Nutmeg brand of children's clothing. Clothing director Tim Bettley explains: 'Customers tell us that they want a range which is fashionable but hard-wearing. We’ll also meet their need for simpler clothing that they can pick up as they do their food shop'.

Created by George Davies of 'Next' fame, George has given Asda momentum in building a nationally-known apparel brand with wide appeal and significant revenue opportunity. George's Facebook page (more than 95,000 likes) features the latest fashions and promotions.

Tesco's F&F fashion brand is also on Facebook (nearly 212,000 likes), with a virtual fitting room and savings vouchers plus, of course, photos of current fashions. The retailer opened Jubilee-themed F&F pop-up shops earlier in the year in busy London areas such as Covent Garden, complete with augmented reality fitting-room technology.

Sainsbury offered its range of Tu clothing in stores only for the brand's first 8 years. Now the retailer will be putting Tu online, just in time for year-end holiday shopping. Collections designed by Gok Wan (above) have helped Sainsbury boost sales and compete against its retail rivals.