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Private-Label Brands Are Threatening Name Brands

By Steve Heller - Apr 22, 2013 at 10:22AM

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Despite economic improvements, U.S. consumers continue to trade down to private-label alternatives.

According to a recent Deloitte survey focused on U.S. consumers and their pantries, name brand loyalty has declined for the third consecutive year. An astounding nine out of 10 consumers are still trading down to private-label brands, despite improvements in the economy. This survey suggests that consumers have not only grown more mindful of their spending habits, but also learned along the way that in-store alternative brands are often comparable. Motley Fool contributor Steve Heller believes that the trend of continued frugality is likely to persist, putting Whole Foods (WFM) and Costco (COST 1.92%) in great position to benefit to boost their margins. Check out the video below to hear his thoughts on the issue.

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Stocks Mentioned

Whole Foods Market, Inc. Stock Quote
Whole Foods Market, Inc.
Costco Wholesale Corporation Stock Quote
Costco Wholesale Corporation
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