Speaking at a Nov. 13 breakfast session during the Private Label Manufacturers Association’s 2012 Private Label Trade Show in Rosemont, Ill., Marc Hubbard, senior vice president with Schaumburg, Ill.-based Planet Retail North America, noted that both the retail and private label industries have been undergoing significant changes.

“Private label manufacturers need to see change as an opportunity,” he said. “Change is not scary.”

One of the changes Hubbard noted that is expected to continue in 2013 is retailers' introduction of non-traditional store formats. He also noted an increase in sales of  produce and grocery items, including store brand items, in drugstores. And dollar stores also are beginning to sell more frozen and refrigerated foods.

“Warehouse clubs are also selling more fresh items, too,” he explained, “and Kroger is now selling clothing, for example.”

Changing lifestyles in the United States are evident, with smaller households and more consumers relocating to urban centers, Hubbard explained, and these trends represent some of the few U.S. expansion opportunities remaining for retailers. Online shopping also will continue to rise as a trend because future shopping generations are growing up with the technology, tools and apps that will revolutionize grocery shopping.

“There is a huge online shopping growth for the top-three retailers: Carrefour, Walmart and Tesco,” he said.

Hubbard said private label will continue to grow and that there will be a growing market for niche and higher-end products. Strong collaboration between retailers and manufacturers will be needed, he added. — S. Malovany