How Retailers Promote Their Own Brands Review of Private Brands Promotions November, 2011 Topics Covered • Private Brand Share of Promos Vs. Year Ago • Private Brand Ad Support Across Departments • Top Categories Promoting Private Brands • Top Retailers Promoting Private Brands • Private Brand Web Promotions Private Brand Share of Weighted Retail Ad Support 19.0% 18.5% 19.7% 19.0% Private Brand Share of Promotions Vs. Year Ago 19.7% 20.3% 17.3% Year Ago Current 15.9% 15.4% 13.9% Private brand share of ad support is down across all departments except general merchandise. All Departments Grocery Source: ECRM, 52 Weeks Ending 10/22/2011 General Merchandise HBC Non-Food Grocery Percent of Private Brand Promotions By Product Segment Share of Total Private Brand Weighted Ad Support Fresh Foods 20.1% Food segments represent 43.8% of all private brand promotions Dry Grocery 13.4% Non-Food Grocery 2.9% Grocery Perishable 10.3% Health & Beauty 12.4% Apparel 16.3% Other Gen Merch 13.8% Housewares 10.8% Source: ECRM 52 Weeks Ending 10/22/2011 Excludes Unbranded Promos Categories with the Most Private Brand Promos Share of Total Weighted Private Brand Circular Ads Bedding Beef Women's Casual Apparel Cheese Entrees Chicken Frozen Prepared Food Men's Casual Shirts Pork Kids' Casual Apparel Frozen Seafood Internal Analgesics Breads&Rolls Hand Tools&Accessories Deli Meats 3.40% 3.16% 2.99% 2.22% 1.83% 1.66% 1.30% 1.29% Surprise! Bedding 1.27% products represent 1.18% 3.4% of weighted 1.14% retailer ad support. 1.09% 1.05% 1.03% Source: ECRM, 1.02% 52 Weeks Ending 10/22/2011 Excludes Ads for Unbranded Products Categories With Over 90% of Ads Promoting Private Brands Private Brands Share of Category Ads Latex Gloves 100.0% Alcohol/Peroxide 100.0% Kitchen/Dining Room Furniture 99.3% Photo Processing Services 96.6% Dorm Furniture 96.1% Beach Furniture / Accessories 95.9% Vehicle Batteries 95.8% Cushions & Hammocks Picnic, Serveware, Drinkware Holiday Candles 95.4% 94.9% 92.1% Source: ECRM, 52 Weeks Ending 10/22/2011 Excludes Some Smaller Categories Categories Increasing Private Brand Promotions Category Anti-Diarrheal Kids' Boots Flower Pots & Planters Allergy Liquids Inline Roller Skates & Access Shelving & Hooks Hand Vacs Eye Medication/Ointment Free Weights Doll Accessories/Clothes Trail Mixes Photo Processing Services Lighting Children's Analgesics Flashlights Source: ECRM, 52 Weeks Ending 10/22/2011 Excludes Some Smaller Categories Year Ago PB Share 34.2% 55.9% 54.2% 26.2% 23.7% 1.2% 0.0% 3.7% 16.5% 7.3% 32.5% 78.4% 61.2% 44.9% 16.1% Current PB Share 76.0% 84.9% 82.8% 54.6% 51.3% 27.4% 25.6% 27.7% 37.3% 26.7% 52.0% 96.6% 79.3% 62.8% 33.8% Share Pt Change +41.9 pts +29.0 pts +28.6 pts +28.4 pts +27.6 pts +26.1 pts +25.6 pts +24.0 pts +20.8 pts +19.5 pts +19.4 pts +18.2 pts +18.1 pts +17.9 pts +17.7 pts Categories Running Fewer Private Brand Promotions Category Floor Mats Towing Accessories Poker Accessories Pressure Washers Kids' Dress Apparel Auto Battery Chargers/Cables Exercise Benches Filing Supplies/Accessories Belts Kids' Furniture Frozen Juice Source: ECRM, Year Ago PB Share 98.1% 64.0% 62.1% 61.6% 65.9% 79.1% 31.8% 51.1% 53.4% 84.7% 39.7% 52 Weeks Ending 10/22/2011 Excludes Some Smaller Categories Current PB Share 67.7% 36.5% 37.4% 38.2% 43.2% 57.1% 9.9% 29.4% 32.7% 67.4% 22.6% Share Pt Change -30.5 pts -27.4 pts -24.7 pts -23.4 pts -22.7 pts -22.0 pts -21.9 pts -21.7 pts -20.7 pts -17.3 pts -17.1 pts Top Supermarkets Promoting Private Brands Private Brand Share of Total Circular Ads Aldi Fresh & Easy Wegmans Loblaws Hannaford Brothers Genuardi's Family Markets H.E.B. Shaw's Supermarket Carrs Tom Thumb Randall's Food Markets Winn Dixie BI-LO Dominick's Finer Foods Food Basics Pavilions Vons Hilander Scott's Food & Pharmacy Hy-Vee Food Stores Pay Less Super Markets 65.44% 61.85% 53.72% 27.39% 26.27% 25.76% 25.33% 24.37% 24.12% 23.99% 23.97% 23.60% 23.45% 23.33% 23.32% 23.21% 23.21% 23.05% 23.02% 23.01% 23.01% Aldi, Fresh & Easy, and Wegmans lead all retailers in private brand promotions. Source: ECRM, 52 Weeks Ending 10/29/2011 Supermarkets Committed to Traditional Brands Private Brand Share of Total Circular Ads SunMart Foods 0.08% Econofoods 0.09% Met Foods 0.32% D'Agostino Supermarkets 0.40% Hillers 0.42% Marc Glassman 0.54% Many smaller grocers choose promote traditional brands over their own private brands. Strack & Van Til 1.03% Ultra Foods 1.08% Magruder's ValuMarket 2.23% 2.64% Source: ECRM, 52 Weeks Ending 10/29/2011 Food Categories with Highest Private Brand Share of Promotions Private Brands Share of Category Ads Dry Beans 87.8% Frozen Fruit 77.1% Salads Carrots 65.1% 55.9% Sandwich & Hot Dog Buns 53.1% Sugar&Substitutes 52.6% Non-Dairy Creamers/Syrups 52.5% Trail Mixes 52.0% Eggs 51.4% RTE Deli Salads 51.4% Toaster Pastries 50.8% Source: ECRM, 52 Weeks Ending 10/22/2011 Excludes Some Smaller Categories Milk 50.7% Non-Food Grocery Categories with Highest Private Brand Share of Promotions Private Brands Share of Category Ads Coffee Filters Picnic Tableware Trash Bags Food Wraps/Bags Bleach Napkins Paper Towels Facial Tissue Toilet Tissue Scrubbers/Sponges Household Cleaners Fabric Softeners Detergents 50.0% 47.3% 38.4% 32.3% 28.9% 25.6% 19.6% 15.7% 15.6% 15.1% 8.7% 6.8% Source: ECRM, 52 Weeks Ending 10/22/2011 6.4% Excludes Some Smaller Categories Top Retailers Promoting Private Brand Grocery Private Brand % of Grocery Ads Aldi 66.5% Fresh & Easy 63.9% Wegmans Shoppers Drug Mart 59.7% 34.4% Loblaws 28.9% Genuardi's Family Markets 28.0% Hannaford Brothers 27.5% H.E.B. 26.7% Carrs 26.0% Tom Thumb 25.8% Randall's Food Markets 25.8% Hilander 25.5% Source: ECRM, 52 Weeks Ending 10/29/2011 Top Drug Chains Promoting Private Brands Private Brand Share of Total Circular Ads 22.4% Shoppers Drug Mart 21.2% Kerr Drug 16.2% Walgreens 15.7% Rite Aid 14.1% Kinney Drugs Rexall 13.0% Pharma Plus 12.9% CVS 12.8% Duane Reade Hi-School Pharmacy Thrifty White Drug Stores 10.9% 9.9% 9.3% Source: ECRM, 52 Weeks Ending 10/29/2011 HBC Categories with Highest Private Brand Share of Promotions Private Brands Share of Category Ads Latex Gloves Alcohol/Peroxide Polish Removers Medical Compliance Epsom Salts Cosmetic Applicators/Removers Anti-Diarrheal Reading Glass Accessories Children's Analgesics Motion Sickness Vaporizers/Humidifiers Allergy Liquids Hand Sanitizers 100.0% 100.0% 89.4% 87.6% 84.1% 80.3% 76.0% 66.0% 62.8% 57.5% 55.9% 54.6% Source: ECRM, 52 Weeks Ending 10/22/2011 53.6% Excludes Some Smaller Categories Top Retailers Promoting Private Brand HBC Private Brand % of HBC Ads Food City Supermarkets 33.3% Thrifty White Drug Stores 32.4% Marsh Supermarkets 31.9% Thriftway (Seattle) 30.8% Adams Super Food Stores 30.5% Super 1 Foods 30.0% Thriftway (Kansas City) 29.8% Roche Bros 29.8% Sack 'N Save 29.0% Top Food & Drug 28.9% Foodtown BI-LO 28.6% 28.1% Source: ECRM, 52 Weeks Ending 10/29/2011 Private Brand Promotions Across Mass Merchandisers Private Brand Share of Total Circular Ads Kmart 21.6% Zellers 17.8% Target Stores 16.6% Meijer 14.8% Walmart Canada 13.5% Shopko Stores 12.9% Walmart-US Pamida Big Lots 8.2% 1.2% 0.1% Source: ECRM, 52 Weeks Ending 10/29/2011 General Merchandise Categories with Highest Private Brand Share of Promotions Private Brands Share of Category Ads Kitchen&Dining Room… 99.3% Photo Processing Services 96.6% Dorm Furniture 96.1% Beach Furniture & Accessories 95.9% Vehicle Batteries 95.8% Cushions&Hammocks 95.4% Picnic, Serveware, Drinkware 94.9% Holiday Candles 92.1% Desk Accessories 88.8% Braking Systems 88.5% Rugs Wall Art 88.1% 87.0% Source: ECRM, 52 Weeks Ending 10/22/2011 Excludes Some Smaller Categories Top Retailers Promoting Private Brand General Merchandise Private Brand % of Gen Merch Ads Aldi 60.7% Food Basics 47.5% Super 1 Foods 37.5% Thriftway (Kansas City) 36.4% Ingles Markets 35.3% Lucky Supermarkets 31.7% Save Mart 29.7% Hornbachers Foods 28.7% H.E.B. 28.6% Loblaws 26.8% Kmart 26.7% Source: ECRM, 52 Weeks Ending 10/29/2011 Private Brand Share of Web Promotions Across Key Retailers % Private Brands Total Web Promos Supermarkets Kroger Stores Albertson's (SV) Food Lion H.E.B. Publix Safeway ShopRite Drug Chains Rite Aid Walgreens CVS Mass Merchandisers Kmart Target Stores Walmart-US Meijer 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 945 678 1838 862 485 3190 593 31.6% 13.0% 7.3% 193 1258 977 25.8% 17.6% 2.0% 0.9% 814 2392 1095 216 Leading grocers run very few web promotions for private brands. Source: ECRM 13 Weeks Ending 10/29/11 Select Retailers Top Categories for Private Brand Web Promotions Private Brand % of Web Promotions Cosmetic Accessories 60.6% Photo 51.3% Domestics 44.2% Women's Apparel 43.7% Kids' Apparel 39.0% Diabetes Care 29.7% Shoes 29.2% Diagnostics Cough/Cold 24.7% 22.9% Source: ECRM 13 Weeks Ending 10/29/11 Select Retailers Methodology • Retail ad support measured by number of ad blocks in retailer print circulars. Ad share is weighted by retailer size. • Ad counts include branded & private label products, but not unbranded. • Ad Circular Data Includes U.S. & Canadian Retailers ECRM’s MarketGate Ad Comparisons Web Site: www.AdCompare.MarketGate.com Studies on Retail Promotions: www.PromotionalReflections.com Contacts: Scott Whalley Tom Pirovano 847-482-1793 440-528-0418 scott@ecrm.marketgate.com tpirovano@ecrm.marketgate.com