The COVID-19 Pandemic has created food insecurity for millions of Americans with consumers searching for food assistance and affordable solutions to maximize spending dollars. In 2020, $5Sbn of food retail sales was attributed to the Supplemental Nutrition Assistance Program or SNAP. Recently, President Biden has taken steps to help these shoppers by increasing benefits by up to 20% for the 12 million families who rely on this program.
Now more than ever, Private Brands play a crucial role in supporting value consumers and the growing group of SNAP recipients. Although we are seeing a significant number of shoppers converting to Private Brands, we cannot forget that the Private Brands we create play an important role for those shoppers who need value every day. To support these shoppers, retailers should emphasize their Private Brand programs’ value proposition and ensure that Private Brands are well positioned both in-store and in their digital solutions. This is critical for the value shopper who is looking to both meet their shopping needs and spend within their limited budgets.
With an estimated 6 to 7 million Americans having applied for new SNAP benefits since February 2020, this further elevates the importance of Private Brands and how they can be positioned to support this shopper. Major retailers are taking steps to address the needs of the value shopper, and all retailers must commit to finding accessible solutions or risk losing the loyalty of this core Private Brand shopper. Two key areas for consideration are:
- Enhance Private Brand Presence Online and Expand Digital Capabilities
- Reinforce Private Brand Value Proposition
READ THE ENTIRE REPORT