Minnesota grocery giant Supervalu Inc. said it will bring its seven brands under one new label called Essential Everyday.
The move will close down brand names Jewel, Albertsons, Cub Foods and others by February, the Chicago Tribune reported.
The rationale for the consolidation includes cutting operating costs associated with producing and advertising seven different store brands, which research shows increases customer loyalty.
Twenty percent of Supervalu customers consistently buy store brands, the company’s vice president of private brands, Sam Mayberry, said.
That loyalty makes it difficult to make a switch, said Jim Hertel, a retail consultant with Willard Bishop in Barrington, Ill.
“That’s the risk you run when it says whatever on the label, and it is not associated with a store I know and have shopped at for years and respect,” Hertel said.
Source : UPI.com
