Private Label Slump Not Long Term

NEW YORKPrivate label sales have slowed, but the decrease may just be a correction, not a long-term trend, according to the director at Nielsen Co. Supermarket News reports Pirovano, director of industry insights for the Nielsen Co. said store brand sales in April 2010 fell to their lowest levels since September 2008 at the Citi Investment Research Food & Drug Conference.

Supermarket News said Nielsen research showed store-brand unit sales at food, drug and mass retailers in April fell to just above 21 percent, which is close to where is was in September 2008. Earlier this year, Nielsen reported private label sales were almost 23 percent.

According to Supermarket News, Pirovano said the dip is alarming, but he believes store brand sales will soon settle at about 22 percent and experience increases from there.