When compared with 25 different retailers, 63% of American consumers deemed Costco's store brands the highest in satisfaction; however, 60% of consumers are more likely to visit Whole Foods Market as a result of its private-label products, according to a recent consumer survey conducted by Consumer Edge Insight.
The survey asked participants about their usage and impressions of store brands across 60 different packaged good categories, including food, beverages, personal care and household product categories, and across 25 different retailers. Respondents who had purchased store brands from a particular retailer were asked how satisfied they were with the brand, and the impact of that particular brand on their loyalty to the store that sells it.
Costco received the highest average satisfaction among buyers of its store brands, with 63% of private-label buyers saying they were “very satisfied" with their purchase. Publix came in second place with 60% of store brand buyers saying they were “very satisfied."
In terms of which retailers’ store brands appear to have the greatest positive effect on loyalty to the store, Whole Foods Market got the highest score with 60% of buyers saying they are more likely to visit Whole Foods Market based on private-label products. Costco came in second with 57% of Kirkland buyers saying that the brand makes them more likely to shop at Costco.
“Most U.S. retailers continue to invest heavily in improving their store brand programs in order to win greater customer loyalty and improve their margins," said David Decker, president, Consumer Edge Insight. “Given the expanding scope of their programs, it’s very challenging for retailers to create and sustain a program that not only scores highly on satisfaction, but also makes customers more loyal to their stores".
