Store Brands

NOV 2016

Store Brands delivers unprecedented strategic and tactical information needed by retail executives to develop and support compelling, differentiated store brand programs to build customer loyalty.

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MAXIMIZING / November 2016 / Store Brands 5 3 operator, said it signed a long-term contract to be the primary wholesaler to Gordy's Market, the largest locally owned and operated grocer in the Western Wisconsin area. In addition to national brand products, SpartanNash said it would supply Gordy's private label needs with brands such as Our Family, Top Care, Value Time and Full Circle. Meanwhile, Coborn's Inc., a St. Cloud, Minn.-based grocery retailer, said it would be switching distribution channels for its private brand products, moving from Affiliated Foods Midwest (AFM) in Kenosha, Wis., to Supervalu in Minneapolis. Coborn's said it also would move all of the products currently supplied by AFM for its four Marketplace Foods stores in Wisconsin to Supervalu; AFM had supplied the majority of national and private brand products for the Marketplace Foods stores. Store closings also were in the spotlight in January. Bentonville, Ark.- headquartered Walmart said it would close 269 stores in the United States and globally. The closings covered 154 locations in the United States, including all 102 of the company's small-format Walmart Express stores, which began as a pilot operation in 2011. Walmart said it would focus instead on strengthening its Supercenters, optimizing its Neighborhood Markets, growing its e-commerce business and expanding pickup services for customers. Also covered in the closures were 23 Neighborhood Markets, 12 Supercenters, seven stores in Puerto Rico, six discount centers, and four Sam's Clubs. January brought with it significant news within the store brand arena, too. In the January 2016 issue of The Costco Connection, a magazine for its members, Issaquah, Wash.-based Costco Wholesale Corp. discussed its goals to ramp up its private label organic product selection. The retailer said it was in the process of securing its own resources of organic meat to ensure the sustainability of the program and would be introducing Kirkland Signature Organic 100% Juice boxes, as well as Kirkland Signature Organic Coconut Water, in 2016. And Thrive Market, a Los Angeles- headquartered online natural and organic retailer that sells only non- perishable products, got into the store brand game with the debut of the Thrive Market brand. Nick Green, Thrive co-founder and co-CEO, said the company planned to develop about 100 private brand items in the first half of the year, according to a Jan. 4 article. Publix Supermarkets also made private brand news with the January introduction of its Publix Premium Blended Greek Yogurt. The 2% yogurt is said to be a low-fat snack and breakfast option that is packed with protein. It comes in 13 flavors, including Black Cherry, Blood Orange, Blueberry, Café Latte, Cherry Pomegranate, Coconut, Key Lime, Lemon, Orange Cream, Peach, Raspberry, Strawberry and Vanilla, the retailer noted. And Walmart Canada, Mississauga, Ontario, said it launched the Great Value Organic line of groceries in response to consumers' growing interest in organic foods and concern over grocery prices. The retailer said it would be rolling out almost 50 affordably priced Canadian certified organic products in stores and on "At Walmart, we believe consumers who want to eat organic shouldn't have to pay more for their groceries," said MAXIMIZING PROFITS PROFITS "Supply chain expertise, sourcing strategies to lower cost-of-goods, and various pricing models – a perfect blend!"

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