Sales of Best Buy's private label brands -- Dynex, Insignia and Rocketfish - rose more than 40% in the fiscal year ended Feb. 28, while overall sales increased just 12%.
The private
labels, whose increasing popularity is attributed to low prices and innovative design, are profitable for the chain, which has substituted them for entry-level products from such brands as
Westinghouse and Polaroid.
Private label electronics also help differentiate Best Buy from competitors like Wal-Mart, Costco and Amazon. But the retailer "must walk a fine line in
selling its own products and potentially competing with its name-brand partners," say analysts.
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