Brands driving consumer loyalty for retailers

A recent study organized by Kantar (KWP) in cooperation with Centromarca (the Association of Branded Suppliers) revealed that brands have the potential to maintain consumer loyalty in stores for all types of suppliers.

This is the case for retailers of both narrow and large assortments. For the former, because this stops them being tempted to look to other stores for their favourite brands. And for the latter as they offer diversity of products that cannot be offered by limited assortment retailers. The retailer is willing to help the consumer to save time by offering an efficient assortment that prioritizes convenience and simplicity, and at the same time caters to consumers’ needs.

It was also found that 85% of consumers alternate between narrow and large assortment shops. While 51% of consumers from large assortment retailers can shop at a different outlet if their preferred chocolate brand is cheaper, 53% are willing to pay more for a product which they feel is beneficial for their health.

Finally, private label ralready accounts for 47% of total sales, but it has lost some share in categories such as juices and nectars, milk free lactose, cooked ham and butter, amongst others.

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