According to a recent study, 3 out of 4 people have changed their shopping habits/behaviors by purchasing less, using coupons, or selecting less expensive brands than in previous times. As people increasingly look for better values in their shopping behaviors, some retail chains are capitalizing on the new consumer frugality by introducing their own brands, or by expanding the product offering of their existing store brands. These store brands can bring the same quality of product as the leading name brands to the consumer for a lower price, while being more profitable to the store selling them due to reduced marketing and distribution costs. As an example, Wal-Mart recently expanded its “Great Value” brand to include 80 new products, and is reformulating 750 existing items to cater to customers wishing to save money.
Philip Davis is a GIS Manager at Buxton.