By Retail Brew Staff
less than 3 min read
Definition:
Private label brands are products made by one company but sold under a retailer’s own brand name. Examples include Target’s Good & Gather and Costco’s Kirkland Signature. Instead of reselling national brands, retailers work with manufacturers to create their own goods, often offering similar quality at a lower price point. By skipping the middleman and using their own branding, retailers get better margins, more control, and potentially stronger customer loyalty as they tailor products to what their shoppers want.
Origins of private label
In the early 1900s, grocery chains like A&P were already selling their own branded goods to stand out and boost margins. Back then, private labels were mostly about no-frills, low-cost alternatives. Fast forward to the late 20th century, and big-box stores like Walmart and Target leaned hard into private labels to compete on price. By the 21st century, retailers started investing in better product development, branding, and marketing. Today’s private label lines span wellness, fashion, and gourmet goods, blurring the line between retailer and brand.
Private label in context
“Nearly 60% of retailers are growing their private label portfolios to build loyalty and improve margins in response to inflation.”
“Catering to inflation-wary consumers seeking value, many retailers in recent months have been going private—label, that is—with new CPG brand launches, line extensions, and price drops.”
