Private Label Sales Increase To $236.3bn In 2023
ESM - European Supermarket Magazine
The industry magazine for C-suite executives and procurement managers working in the European grocery retail sector.
Private label products witnessed a 4.7% increase in dollar sales to $236.3 billion in 2023 compared to the previous year, according to PLMA’s 2024 Private Label Report.
Sales increased by $10.1 billion between 1 January to 31 December 2023, compared to the preceding year.
The performance of store brands exceeded national brands, which grew 3.4% in dollar sales, the study noted.
The annual report analyses store brand and national brand sales in unit and dollar sales in key categories and is based on sales figures from the PLMA/Circana Unify+ market data portal.
Compared to 2019, annual store brand dollar sales increased by $60.2 billion in 2023, registering a 34% increase, the study found. Store brand dollar share rose 1.2 points to a record 18.9%, PLMA noted.
During the four years, store brand unit sales were ahead by 500 million, and unit share improved by 0.8 points to 20.7% – also a new high.
Portuguese retailer Jerónimo Martins has posted a 16% jump in fourth-quarter net profit, driven by a sales increase at its Polish market-leading chain, Biedronka, but said food deflation would likely shrink its margins.
The company made a net profit of €198 million in the quarter, slightly exceeding the €193.6 million average forecast by analysts polled by LSEG.
In what has become a near-monthly occurrence, E.Leclerc was the strongest performer in the French grocery sector in the period from 22 January to 18 February, according to Kantar market data.
The French market leader reported a market share gain of 1.5%, to capture 23.9% of French spend during the so-called 'P2' period.
Interestingly, Kantar noted that E.Leclerc has not recruited any additional shoppers, but its loyalty rate is increasing 'significantly'. The retailer's online channels, which account for 4.4% of the overall market, have contributed more than a third (36%) to its market share gain.
German meal-kit maker HelloFresh provided a 2024 core earnings forecast way below expectations, shocking the market for a second time in five months after a profit warning last year.
It also scrapped its mid-term revenue and profit guidance, citing tougher market conditions and sending its shares plunging.
The Berlin-based company had been aiming for €10 billion ($11 billion) in revenues and €1 billion in adjusted core profit (AEBITDA) in 2025. It did not give a new date for those goals.
It said 2024 core earnings would be hit by higher marketing expenses and the costs of ramping-up in its ready-to-eat business.
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HelloFresh now expects adjusted earnings before interest, taxes, depreciation, and amortisation of €350-€400 million ($383-$437 million) this year, 29% below analysts' forecast under the rosiest scenario, according to a company-provided consensus.
Aldi Nord is increasing the salaries of more than 39,000 retail employees covered by collective agreements in Germany.
The employees have been waiting for an agreement in the collective bargaining dispute for more than a year, the discounter said in a statement.
Aldi Nord will adjust the collective remuneration of retail employees in Germany again before the conclusion of collective bargaining.
The monthly collectively agreed gross remuneration will increase in the coming months, depending on the respective tariff area, the company noted.
With an increase of 5.3% for the financial year 2023, which was already made in October 2023, the total increase adds up to 10%.
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