Private Label Is Losing Share. So Why Are Retailers Still Building More Of It?

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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 different.

It can create exclusive products,
Widen price architecture,
Improve bargaining power,
Build customer loyalty
and give the retailer more influence over category economics.

Shoprite is stretching private label in both directions. Ubrand targets price-sensitive shoppers.

Simple Truth addresses health and wellness. Forage & Feast competes in premium food.

For an independent supermarket owner, the question is therefore not whether “private label is growing”.

The better question is: what job would your private label perform?

If the answer is simply “sell something cheaper”, you may have misunderstood the opportunity.

Private label works when the product, price, quality, supply and shelf position make commercial sense together.

That requires far more discipline than printing your own name on a packet.

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Disclaimer: Personal views are based on public info and my SA retail experience. Independent commentary, not representing any BRAND, its management, franchisees, suppliers or employees.

#Shoprite #Checkers #BoxerSuperstores #PicknPay #SPAR #Woolworths #FMCG #FastMovingConsumerGoods #RetailIndustry #AfricanBusiness #darkstore #Clicks #Dischem #Medirite #AI #Robotics #PrivateLabel

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