- 22 Aug 2022
- ICICIdirect Research
Lifestyle retailers positive on growth prospects of private label brands
News: As per media reports, Lifestyle retailers are betting big on the growth of private brands and labels given the strong growth witnessed in the last few months.
View: Inflation in raw material costs has led to significantly higher average selling price across most reputed national brands. This has led to consumers shifting towards lower priced private labels across various national retailers and resulted in increased share of private labels. Higher share of private label is usually margin accretive for retailers as private labels have higher margin than major national brands sold by these retailers . Retailers are enhancing investment in private brands to scale up the revenue share from in store private labels in a bid to capture the demand and provide positive momentum to their margin profile.