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Retailers accelerate private-label expansion as consumers prioritize value over national brands

Executive summary: Grocery retailers are reducing reliance on national brands and expanding their own private-label offerings to address consumer concerns about purchasing power. This shift could reshape competitive dynamics in the food sector, affecting brand manufacturers' sales and altering consumer loyalty patterns.

Who is involved: Major European grocery chains, national food manufacturers, and price-sensitive consumers.

Likely next: Retailers will likely increase private-label SKUs, negotiate better terms with suppliers, and national brands may respond with innovation or price adjustments.

Le Figaro reports that French and European grocery chains are shifting shelf space from national manufacturers to their own store brands, citing weakening consumer purchasing power and the need to differentiate from rivals. The move reflects a broader trend where retailers seek higher margins by controlling more of the value chain, especially amid inflationary pressures. While national brands may face reduced visibility, retailers stand to gain from increased control over pricing and product assortment.

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