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 2.26%) 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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Private-Label Brands Are Threatening Name Brands
NASDAQ: WFM
Whole Foods Market

Despite economic improvements, U.S. consumers continue to trade down to private-label alternatives.
Erin Miller has no position in any stocks mentioned. Fool contributor Steve Heller owns shares of Whole Foods Market. The Motley Fool recommends Costco Wholesale and Whole Foods Market. The Motley Fool owns shares of Costco Wholesale and Whole Foods Market. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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