In the May/June 2024 edition of ESM, we spoke to several prominent operators across Europe about how they are enhancing their private-label offerings, including Lasse Lindner, Category Manager, REMA 1000 Denmark.
What recent trends in private label have you observed in your business, and also the wider market?
The market develops very fast, and the development moves even faster when it comes to the private-label category, due to market trends and various factors affecting the market, such as inflation.
We have seen a need for new private-label products in all categories. The biggest and most influential factor in recent years is the economy, as customers turn to cheaper products. Another trend concerns quality, which is increasing within the products, as well as in the packaging.
Most European countries have seen inflation ease in recent months. Do you think that this will affect private-label purchasing, as brands become more competitive?
During periods of inflation, we have seen customers moving towards private-label products. We believe they will stay due to the value for money they experience.
In what categories has private label performed particularly well for REMA 1000 over the past year, and why?
We have seen our private labels perform so well, and actually outperform some brands. Our award-winning products in the European Private Label Awards – REMA 1000 red-wine glögg and apple juice – are two very good examples. In these categories, we do not carry brands in our assortment.
We actually see the same pattern in other categories, such as diapers. This is another category in which we do not carry brands in our assortment any more.
Private-label products are traditionally split into three tiers: value, standard and premium. Which of these has shown the most growth for you, and why?
Due to inflation, we have seen the biggest growth in the value tier, due to the low prices. We generally experience growth in all three tiers, and we believe this will continue, as customers increasingly turn toward our products and private label in general.
