Kroger’s private label hits get their own store-within-a-store
Kroger wants foodies to have a special place on their shopping list for its private label products, so the company is carving out a branded section in the center store to highlight them.
Kroger has begun testing an in-store section called The Treasure EmporiYum, according to Supermarket News. The section, highlighted by bold signage, curates what the retailer considers some of its most distinctive private label food offerings. The branding is supported by its own dedicated section of the Kroger website and branded newsletter as well.
The piloting of the store section comes in response to positive comments from customers about specific private label products on social media. The retailer hopes to do a better job “unbury[ing] the treasure” of its unique private label food offerings.
As private label grocery products have shed the reputation of being low-cost, low-quality knock-offs of national brands, there have been big returns for players that can do private label right. A recent study published by Progressive Grocer indicated, for instance, that 56 percent of customers would consider purchasing a private label product at Trader Joe’s because of the store’s positive reputation for private labels.
Kroger has made numerous moves and announcements in the past year indicative of a big push for private label expansion. In fact the private label focus has extended beyond Kroger’s own store shelves. This fall the chain announced the pilot of a partnership with Walgreens that will stock lines of products like Kroger’s Simple Truth brand in the retail pharmacy’s grocery section.
The private label push has also moved beyond grocery. Over the summer Kroger announced the introduction of an exclusive apparel line called Dip in conjunction with Joe Mimran, the designer behind the Club Monaco and Joe Fresh brands. The line was introduced at 300 Kroger Marketplace and Fred Meyer locations.
Earlier this year the grocer found a place for its private label products overseas, as well. Kroger inked a deal with Chinese e-commerce titan Alibaba to test sales of its private label products on the Tmall online shopping platform.
- New Kroger merchandising concept spotlights exclusive brands – Supermarket News
- Treasure EmporiYum – Kroger
- Shoppers More Interested in Trader Joe’s Private Label Than Any Other Retailers’ – Progressive Grocer
- Will the Kroger Walgreens pilot lead to something really big? – RetailWire
- Kroger shakes up own brand fashion with one fell swoop – RetailWire
- Kroger teams with Alibaba to sell private labels to half a billion Chinese consumers – RetailWire
DISCUSSION QUESTIONS: Will Kroger succeed in getting foodies to check out its private label brands with this type of a special section? Is it a worthwhile strategy for retailers to create a store-within-a-store to highlight their own brands?