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The Private Label Boom: 5 Strategies for Retailers and Suppliers

Provate label

Catering to Inflation-Wary Shoppers: Private Labels on the Rise

Retailers are doubling down on private-label products in an inflationary landscape where value is paramount. This trend has seen a surge in new CPG brand launches, line extensions, and strategic price drops, making private labels a key player in retail. Even Ace Hardware, traditionally outside the food and beverage sector, has introduced its brand of sauces and seasonings. This shift signifies a broader movement towards offering consumers more affordable, high-quality alternatives.

1. Responding to Consumer Needs

Retailers like Gopuff, Target, and Kroger are responding to consumer demand for value through strategic expansions of their private-label offerings. Gopuff’s Basically Premium line and Target’s Dealworthy brand exemplify this trend, providing consumers with various options at competitive prices. By catering to the inflation-wary shopper, these retailers attract cost-conscious consumers and build brand loyalty through consistent quality and affordability.

2. Competitive Advantage and Profit Margins

Private label products allow retailers to maintain a competitive edge by offering unique products at lower prices than national brands. This strategy not only attracts more customers but also enhances profit margins. For instance, Kroger’s expansion of its private label pet line, Abound, and Walmart’s introduction of Better Goods illustrate how retailers can diversify their offerings and capture a larger market share. Suppliers partnering with these retailers must align their production capabilities to support this dynamic growth.

3. Innovation and Market Agility

The flexibility of private-label products enables retailers to quickly adapt to market trends and consumer preferences. Misfits Market’s expansion of its Odds & Ends brand and CVS’s rollout of Well Market highlight the importance of innovation in staying relevant. Suppliers must be agile and ready to support rapid product launches and adjustments, ensuring they meet the evolving needs of retailers and consumers.

4. Strategic Branding and Marketing

Effective branding is crucial for the success of private-label products. Walmart’s Bettergoods and Amazon’s continued focus on private-label groceries demonstrate the importance of robust marketing strategies to distinguish these products in a crowded market. Retailers must invest in creating strong brand identities for their private labels, while suppliers should focus on delivering high-quality products that uphold the brand promise.

5. Leveraging Data for Growth

The use of consumer data is integral to the success of private labels. Retailers like Target and Kroger leverage vast amounts of consumer data to develop products that meet specific needs, driving higher engagement and sales. Suppliers can benefit from this data-driven approach by aligning their production and innovation strategies with the insights provided by retailers, fostering long-term partnerships.


The growth of private-label products offers substantial opportunities for retailers and their suppliers. By focusing on consumer needs, competitive pricing, market agility, strategic branding, and data-driven decision-making, retailers can harness the power of private labels to drive growth and profitability. Suppliers, in turn, must be ready to support this dynamic landscape, ensuring they remain valuable partners in this evolving market.

About Us

Woodridge Retail Group is a sales and marketing agency that accelerates business growth and profits online and in stores. We meet clients where they are and commit to growing their businesses. That commitment is core to who we are. 

From national retailers like Walmart, Target, CVS, and online giant Amazon to regional retailers like Texas’ H-E-B, Woodridge is with you every step of the way.


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