Proliferation of private labels in the groceries sector: The impact on category performance

In consumer goods retailing, an increase in private labels on offer has been evident for several years now. Therefore, the purpose of this paper is to analyse how retailer assortment-policy measures and pricing-policy measures to promote the sales of private labels will affect the level of category performance. The findings, based upon POS scanning data from the German groceries sector, are at first view surprising since extending the range of private labels and reducing that of national brands does not lead to greater category performance. The paper offers important retailing, managerial and welfare economics implications of the findings.