Store Brands Challenge National Brand Quality, Selection, And Price

According to a new study from Accenture, 64% of shoppers surveyed admitted that their grocery carts were at least half full of store-brand products, and 39% said they have increased their purchase of store-brands in recent years as a result of the tough economic times.

The study of consumers found that price remains the key factor in the majority of store-brand purchases. 66% of shoppers said they buy store-brands because they are cheaper. While 87% of shoppers said they would buy more brand-name products if they were offered at the same price as the comparable store-brand, 51% said that it would take a permanent price reduction of the brand-name product, to the same price as the store-brand, to persuade them to return to purchasing the brand-name product.

The report concludes that the growing perception of trust, quality and preference for private-label products should be of most concern to consumer goods companies that are competing with stores for the same shelf space.

  • 50% of consumers buy store-brand products because they perceive the quality to be just as good as the brand-name equivalent
  • 42% buy a private-label product because they “trust” that particular store’s brand
  • 28% simply prefer the store-brand product to the brand-name product
  • 9% claimed not to buy store-brands because they felt that the quality or taste was inferior to the brand-name product

Attitudes Towards Store Brand/Private Label Products (% of respondents)

Attitude re: Store Brands

% of Respondents

Buy because cheaper


Quality just as good


Better variety




Just another brand


Prefer store brand


Buying for years


Don’t buy/not as good


Embarrassed to buy


Source: Accenture, July 2012

Bob Berkey, from Accenture’s Consumer Goods & Services, suggests that  “... extreme competition between retailers and consumer goods companies can result in inefficiencies and waste for manufacturers and retailers, and undifferentiated products for the consumer... “

48% of shoppers believe that stores now offer a greater number and variety of store-brand products, and 36% see store-brand products as simply another brand on the shelf. 77% of shoppers said they would not decrease the amount of store-brand products they buy even if their disposable income were to return to the same level as it was before the economic downturn.

Berkey concludes that “... it is the increased sophistication of stores’ own brands that has helped them retain customers... unique attributes... drive preference and loyalty in their consumer...”

For additional information from Accenture, please visit here.







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