A rise in shoppers turning to private label options is signalling that paying premium prices for brand names might be a thing of the past.
Indeed, brand loyalty is out and bargain hunting is in, according to a new survey from RDSolutions. It reported that 86 per cent of shoppers have switched to private label products for at least some of their regular purchases. The shift reflects growing price sensitivity as inflation and global tariffs continue to squeeze household budgets.
“These findings highlight just how central price has become to shopper loyalty — both to retailers and brands,” said Lee Kallman, chief commercial officer at RDSolutions. “Economic headwinds like inflation and tariffs are accelerating changes in consumer behaviour. Retailers and manufacturers who don’t respond quickly risk losing share.”
And it’s not that shoppers are just changing stores, they’re changing what they buy. Forty-two per cent said they opt for cheaper alternatives when prices rise, while 20 per cent skip certain items altogether. Only 11 per cent stick with their usual brands, no matter the cost.
Among those who now buy private label, 75 per cent say these products are just as good — or better — than national brands.
Promotions still matter. Two thirds (65 per cent) said deals influence their perception of value, and 28 per cent are buying fewer items overall as prices climb.
Leave a Reply