Monday, July 24, 2006

Mid-price retailers will be 60% private label by 2010

NPD Group, according to this Boston Globe article, says that the merchandise mix at mid-price stores is becoming increasingly heavy on private label.
The trend is expected to accelerate. Research firm NPD Group predicts that by 2010, 60 percent of the merchandise mix will be private brands and labels, up from 25 percent in 1975.
It seems like every retailer is looking to private label as the magic bullet. The contrarian side of me says anything that popular is certain to be overdone. Look for somebody to do very well by swimming against the tide, with a strong brand name approach.

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