Pick n Pay chief executive Nick Badminton said, "The company's private label brands have been well-received among South African consumers and our overall private label share of sales is already 29% across nearly 2000 lines.
"The decision to launch the latest addition to the private label range is in line with our strategy of 'good (No Name), better (Pick n Pay brand), best (Finest)'. The range will offer customers the opportunity to prepare restaurant quality meals at home, bringing fine dining home.
"The label will include premier products that extensive research has shown our customers want to be able to buy at our stores and will add to the overall customer experience of quality and convenience. The range will help drive our business ethos of putting the customer first, while delivering the best quality at the most competitive prices."
The label offers products that have been selected from authentic sources, such as Kalamata olives from the Greek Peloponnese, organic coffee from Antigua, fine Belgian chocolate and premier South African rooibos tea. The range will also change with the seasons so customers will have new offerings throughout the year.
"The international trend in retailing shows that private label goods are growing rapidly, with massive shifts in consumer buying patterns. A Nielsen Global private label report, released in March 2011, illustrated that the trend towards 'value conscious shopping' grows during recessionary times' and there is every indication that 'even as economies stagger out of the recession and rehabilitate, this environment will see a fair share of shoppers retain their value mind-set with an increased preference to shop at stores that have everyday low prices'. Introducing premium products at value for money prices we believe puts us at the forefront of this global trend," Badminton continued.
The Nielsen global survey of more than 27,000 respondents across 53 countries found that the private label phenomenon is here to stay. More than half of consumers surveyed said they purchased more private label brands during the economic downturn and nearly 91% said they will continue to do so when the economy improves.
"While internationally there are countries ahead of us in terms of private label percentage sales such as the UK, which has seen a rise to 43% of private label market share in 2009 and 17% in the US in 2009, Nielsen shows a 14.9% weighted global average of private label product penetration into market. We are well in line with this and set to grow much further," he concluded.
