Private Label Is Losing Share. So Why Are Retailers Still Building More Of It?
So Why Are Retailers Still Building More Of It? A national slowdown does not mean private label has stopped making commercial sense. If you only read the national market-share number, you could conclude that private label has stalled. That would be a dangerous conclusion for anyone running a supermarket. NIQ says South African private-label sales reached R53.5 billion in the first half of 2026, up only 1.9%, while independent brands grew 7.9%. Private label slipped to 17.5% of FMCG sales value. Now look at Shoprite. Its 2025 integrated report says private label contributed 20.5% of supermarkets' RSA sales, excluding liquor. The portfolio was worth R35.3 billion, up from R20.9 billion four years earlier. That tells you something important. Private label is not one market. A weak house brand with poor quality, no clear price gap and inconsistent availability can lose to a national brand on promotion. A disciplined retailer-owned range can do something very differ...