Well of course. Too many of the name brands at the grocery store are not worth the additional cost so who wants to pay top dollar? It's not the case with everything, but enough is out there to make it an easy decision. I stopped buying "Maille" mustard years ago when I found out that the store brands were the same, sometimes better, but for a fraction of the price. The same goes for lots of products though I have not tried the generic brands in ages.
The number of people switching to the private-label foods packaged and sold by Kroger Co. at its stores has been increasing. The company runs 2,477 stores in 31 states. Some of its regional chains include Ralph's, Fred Meyer and Food 4 Less.
"We're seeing particularly strong growth in our private selections and value tiers," Kroger Chief Executive David Dillon told investors in a conference call.
In recent years, large supermarket chains have been beefing up the number of items they sell under their own private-label lines. The items typically sell for less than a name brand on the same shelf.
Based on its proprietary shopper-card data, Kroger found that 14% of its customers traded down to its corporate brand items for the quarter Nov. 8. It sells private-label goods in three separate price categories, competing for sales in everyday staples to pricier organic foods.
Grocery stores have been targeting shoppers with more ready-to-eat meals in a bid to capture business from restaurants, which face declining sales in the current economic downturn with more people eat at home.
