CHICAGO — Stuart Aitken, president and CEO, outlined key retail and consumer trends in his latest Store Brands Spotlight commentary, highlighting how households are adapting to today’s economic environment.
Aitken noted that low-income consumers are making sharper trade-offs at the store, cutting back on general merchandise and restaurant spending as they react more strongly to headlines about financial distress.
“Even as many consumers grapple with higher credit card debt and read headlines about economic distress, they remain resilient. We will see this play out in the 4th quarter when all consumers will want to celebrate the holidays with their families and will be preparing more meals at home,” Aitken wrote.
Private brands are no longer limited to value-conscious shoppers. Premium private labels are gaining traction with high-income consumers, particularly in club stores, creating new competition for traditional CPG brands.
“Understanding the why behind consumer behavior will continue to increase in importance as competition between traditional and private brands heats up. Retailers and CPG companies face both opportunities and challenges moving forward.”
He also pointed to the “protein boom” as a lasting trend, driven not only by the impact of GLP-1 medications but also by aging Boomers and health-conscious consumers fueling demand for protein-rich foods.
