Year on year, the number of private label consumers increased from 21.3% to 37.5%.
Among the largest grocery chains, «Pyaterochka» customers were the most loyal to their own brands — 74% chose private label products.
Among buyers of «Azbuka Vkusa» 64% are adherents of the network’s own brands.
Next: buyers of «Lenta» and «Perekrestok» — 57% each.
X5 Group, the owner of «Pyaterochka» and «Perekrestok», notes that the growing popularity of private labels is not only characterized by the desire of buyers to save money — it is an awareness of the optimal ratio of products in terms of «price — quality».
This conclusion is supported by the popularity of private labels among buyers of «Azbuka Vkusa»: the products of this retailer have never been in the first price category.
At the same time, in 2021, the share of private labels in the turnover of «Azbuka Vkusa» amounted to 16.2%, having increased by 1.1 p.p.
The share of private label products in retail turnover increased in other chain stores in 2021:
«Pyaterochka» — growth from 18.8% to 22.4%
«Perekrestok» — growth from 12.4% to 15.2%.
More than half of the assortment in the «Da!» discounters owned by the O’Key group consists of private label products, and in the «O’Key» hypermarket chain of such products 7.8 %.
Growth in private label sales in Da! in 2021 increased by 25.5% compared to 2020 and by 60% compared to 2019.
In the «Magnit» chain of stores, sales of private labels grew by almost 24%, amounting to 16% of the total store revenue.
The range of private label products in the network has grown by 750 items, and in total, about 4,000 commodity items under the brand name are presented on the shelves of the retailer’s store.
By 2025, the company plans to increase the share of private labels in sales to 25%.
But still, in general, the retail audit conducted by the research company NilesenIQ, suggests that the increase in the number of buyers of private label chains is primarily due to the desire of consumers to optimize the budget and reduce expenses.
In turn, this trend has formed a new round in the development of private label chains: their share in Russian retail has risen to the highest levels over the past five years — 5.5% (data as of September 2021).
Private label sales growth outperforms the FMCG average:
growth in sales of private labels in the food segment in monetary terms amounted to 17%, while the growth of all goods was only 6%.
in the non-food segment, the growth in sales of private label goods amounted to 5%, while the turnover of all goods in this segment fell by 0.5%.
