Store brands posted double-digit sales increases across U.S. supermarkets, discounters, and drug stores as shoppers stocked up on products during the first stages of the coronavirus pandemic. Nielsen reports that first quarter dollar sales of private label products across all retail outlets compared to the year before climbed nearly 15% during the first quarter, up $4.9 billion. Unit volume increased nearly 13%, representing a gain of around 1.5 billion products sold. Total dollar sales of store brands in the first quarter were $38.4 billion and unitswere13.2 billion.
Store brands more than held their own against the national brands. During the quarter, private label gained about one third more in both dollar and unit sales than national brands, according to data provided to the Private Label Manufacturers Association by Nielsen. In all U.S. retail outlets, store brands grew +14.6% in dollar volume and +12.8% in unit volume, compared to gains of +11.5% in dollars and +9.2% in units for national brands. Private label manufacturers, meanwhile, are making some significant operational changes to cope with the rising demand. In certain categories, such as paper goods, over-the counter medicines, and hand sanitizers, factories are operating 24-hours a day, seven days a week. Some companies are creating fair share allocations for high-demand products, while many are simplifying SKU offerings, extending lead times to build inventories, and retooling to be more efficient for growing e-commerce business.