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In-house labels jump off shelves

The Post and Courier
Thursday, June 26, 2008


Photo of John McDermott

Penny-pinching in the grocery aisles is pushing up demand for some store-brand products.

Bi-Lo, which has about a dozen stores in the Charleston region, says it is. The Upstate-based grocer said sales of its four lines of in-house food and consumer goods are up a healthy 5 percent chainwide. Trends at its local supermarkets are "certainly consistent with this average," the company said in a statement.

"I've been in the grocery business for over 20 years, and this is by far the greatest increase in store-brand sales I've ever seen," said Mike Mannion, director of sales planning and corporate brands for Bi-Lo.

In response, the Mauldin-based chain has been making adjustments, such as clearing more space for its hot-selling in-house merchandise, which is sold under the Southern Home and other names, said Rob Mould, Bi-Lo's vice president of category management.

Sky-high gas prices, naturally, are said to be fueling the renewed interest in private-label goods, which generally cost less than name-brand items. Indeed, what's happening at Bi-Lo reflects broader industry trends, according to the Nielsen Co.

In a study released this month, the global research outfit found that sales of private-label consumer packaged goods at grocery stores rose nearly 9 percent over the past year to $50 billion. The top-selling food items are eggs, milk and cheese products, according to the study. As for inedibles, private-label aluminum foil, paper towels, paper plates and toilet paper are in demand.

But Nielsen also found shoppers perhaps are not as thrifty as the escalating sales numbers suggest, though Bi-Lo customers certainly could be an exception. The firm said overall sales of in-house brands on a per-unit basis are actually down slightly. Nielsen's conclusion: Rising prices for low-margin commodity products such as eggs, milk and cheese are driving up private-label revenues.

Salvage crew

The historic Cigar Factory at East Bay and Columbus streets is set to be transformed into a trendy blend of residential lofts and commercial space, but before that happens, everything that's been inside for months to decades must go. In an effort to prevent what's been left behind from being carted off to the dump, the nonprofit Sustainable Warehouse is marketing the abandoned merchandise, including usable equipment and fixtures, at bargain prices. "This is our first salvage sale," said Rebecca O'Brien, head of Sustainable Warehouse. "There are probably 1,000 pieces of stuff. We are pricing it to move. There is not going to be anything over $50."

The sale is set for 9 a.m.- 2 p.m. today through Saturday. For details, go online to sustainablewarehouse.org.

Jim Parker of The Post and Courier contributed to this report.




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Comments

This article has  2 comment(s)

Posted by griff895 on June 26, 2008 at 7:52 a.m. (Suggest removal)

Consumers need to be careful because some of these house brands "appear" to be cheaper because the quantity is less than the national brand next to it. Bi-Lo's Southern Home products are usually very good, comparatively, but they are often slightly smaller, i.e., 14 ounces instead of 16 ounces. In this way the price "seems" to be better,and sometimes is, but may not always be.



Posted by amylrod on June 26, 2008 at 9:55 a.m. (Suggest removal)

I was unaware of that. Thanks - I'll look more closely the next time I shop for house brands.




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