Private label gains as trade promotions decline

Private label is picking up market share across Europe not as A-brands cut back on their trade promotions, says the PLMA.

A new report from SymphonyIRI found that the number of trade promotions is declining, with the trend particularly noticeable in the UK, where the level of trade promotions was the highest. France, The Netherlands, Germany and Spain also experienced a decline in the use of trade promotions in the second quarter of this year.

SymphonyIRI says that shoppers, which previously sought value by taking advantage of the growing number of multi-pack promotion offers from brands, are now reaching their limit in how many deals they can buy. In the first half of 2011 consumers in the UK and Germany started to make cuts in the number of items they purchased as well.

The research shows that in Italy and Greece retailers are promoting their private label products more frequently, which may be having an impact on the brand’s promotion strategies in those countries.