French retail group Auchan is planning to merge the product category private labels in its Russian business, according to Lebenzmittzel Zeitung.
Currently, Auchan Russia uses 29 different private label brands, but these are now set to be combined under the Auchan umbrella brand.
The retailer began producing its first line of own brand goods in Russia in 2003, and more recently it introduced the 'Kazhdy Den' (Everyday) economy line of products.
It is reported that new branding transformation will be completed within the next two years, starting with non-alcoholic drinks, which will feature the retailer's logo by the end of 2017.
Last year, Auchan announced plans to gradually make its banners more homogenous, and place greater emphasis on the Auchan brand. However, when its supermarkets across Europe rebranded to Simply Market, Russia maintained the Atak brand.
"In the Auchan universe, Russia has enjoyed special rights," said Gildas Aitamer, senior retail analyst at Lebensmittel Zeitung.
"When the retailer adopted its three-tier private label strategy, Russia continued to operate dozens of phantom brands. However, these days appear to now be coming to an end, with the single-brand strategy now being implemented in the country to align with the rest of Europe."
"The new umbrella label with its unified design will make Auchan’s private label offering stand out more in the mid-tier segment, enabling shoppers to clearly identify alternatives to brands," he added.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.