A new study of comparative prices on a wide range of everyday supermarket purchases demonstrates why more shoppers than ever before are steering past the national brands and reaching for the retailer’s brand instead.

A new study of comparative prices on a wide range of everyday supermarket purchases demonstrates why more shoppers than ever before are steering past the national brands and reaching for the retailer’s brand instead.

The study revealed that shoppers on average could save 33.3% off their grocery bill by filling their shopping carts with the store brand versions of 40 essential household items and pantry staples. The survey took place over a six-week period in a suburban supermarket located in the northeast.

The research, conducted by the Private Label Manufacturers Association, New York, tracked the pricing for typical grocery items at a conventional supermarket. Included in the survey were spring cleaning items such as glass cleaner, paper towels and pine oil disinfectant, as well as two dozen pantry staples such as corn flakes, pasta sauce and carbonated beverages and personal necessities such as mouthwash and facial tissue.

Results indicate that consumers who choose the retailer’s brand for products on the list rather than the national brand could save $42.30 (a savings of 33.3%) on average on their total bill. When buying the national brands, the 40-item purchase came to $127.03 on average over six separate trips, while the same purchases for the retailer’s brands cost $84.73.

For every category in the study, a leading national brand product was compared to a similar store brand product and prices were adjusted to account for all known discounts, coupons and promotions available for each of the six shopping visits in the study.

Among individual food items, the cost savings ranged as high as 43.5% on hot dog buns. Savings in many non-foods categories were even greater.
 
Typical Store Brand vs. National Brand Market Basket Comparison

                                        National Brand    Store Brand
FOOD ITEMS                Unit Price    Unit Price
American cheese        $4.29    $2.79
Bagged Salad              $2.63    $2.76
BBQ Sauce                   $1.50    $1.21
Bottled Water               $5.66    $3.97
Canned Corn               $1.13    $0.75
Carbonated Beverage $1.61    $0.86
Corn Flakes                  $3.79    $2.64
Grape Jelly                    $2.19    $1.59
Hamburger Pickles    $2.19    $2.19
Hot Dog Buns              $2.99    $1.69
Hot Dogs                      $3.89    $2.49
Ice Cream                    $4.66    $2.56
Iced Tea Mix                 $3.79 $2.63   
Ketchup                        $1.69    $1.29
Mustard                        $1.91    $1.61
Onion Dip                    $2.29    $1.50
Packaged Macaroni & Cheese    $1.00    $0.68
Pasta Sauce               $2.50    $1.50
Peanut Butter             $2.66    $2.02
Potato Chips              $3.82    $2.42
Refrigerated Orange Juice    $3.38    $2.59
Salad dressing           $2.76    $1.92
Soda Crackers           $2.53    $1.74
Spaghetti Noodles    $1.30    $0.91
       
AVG MARKET BASKET TOTAL    $127.03    $84.73

Average savings of a full one-third off their regular grocery purchases can help explain why shoppers are choosing the retailer’s brands for roughly one of every four products they buy in the supermarket. Data from The Nielsen Co., New York, show that annual sales of private label products grew by more than $18 billion over the most recent 5-year period and unit market share for private label in U.S. supermarkets is now 23.5%.