Private labels are surging as cost-conscious consumers shift from premium brands. In Europe, private label penetration surpassed 40% in 2024, with Aldi, Lidl, and Carrefour leading the charge. In the U.S., store-brand sales at Kroger and Target grew 12–15% YoY, aided by inflationary tailwinds and repositioned premium offerings.
Gross margins on private label SKUs average 25–30% higher than national brands. Retailers are investing in brand storytelling and packaging design to reposition private labels as lifestyle-driven, not budget-only. In high-inflation categories like dairy and household goods, store-brand share has increased by 18–22% in volume.
The report covers cost modeling, consumer perception shifts, and strategies for private label expansion in food, wellness, and household.
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The future of physical retail is digital at its core. U.S. omnichannel leaders—like Macy’s, Best Buy, and Target—are reporting 30% higher LTV among hybrid shoppers who engage across channels. In-store technologies like RFID inventory systems, AI checkout, and smart mirrors are driving 8–11% conversion lifts, while optimizing return workflows has cut reverse logistics costs by 23%.
Click-and-collect orders (BOPIS) are up 42% YoY, reflecting shifting shopper expectations for flexibility. On the backend, unified commerce platforms are reducing inventory write-offs and streamlining fulfillment by syncing data across POS, e-commerce, and warehouse systems. AI-driven merchandising engines are further boosting gross margin by 2–4 percentage points through predictive replenishment.
As store footprints evolve into fulfillment hubs and experiential centers, omnichannel success will hinge on operational integration, dynamic pricing, and shopper insight loops.
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