Retailers are racing to one-up their competition by lowering the prices of their private-label products.
Last month, Target launched a new private label called Dealworthy that includes 400 products across home, apparel, accessories and electronics. Most items are under $10, with some for less than $1. Meanwhile, kids’ clothing company Carter’s has a new pricing program called Everyday Value that offers low prices on more than 500 items. Even dollar stores are funneling more resources into product expansion. In January, Dollar General debuted a new line of $3 to $8 fragrances called Club92 in partnership with Slatkin + Co.
Although inflation has cooled since recent highs, prices of goods are still up slightly, affecting how, when and where consumers shop. According to the latest U.S. government data, overall consumer prices grew 0.4% from January to February, though the price of food remained unchanged. Shoppers remain under pressure, and 55% have switched to buying less-expensive options, according to a 2023 survey of more than 8,000 people by SMARTeam CPG Consulting. Retailers know that shoppers are hesitant to hand over lots of cash, and they’re investing more in their lower-priced selections as a result.
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