STORES Magazine - May 2009 - (Page 24)

EXECUTIVE SUITE / COVER STORY BY SUSAN REDA, EXECUTIVE EDITOR S afeway chairman and CEO Steve Burd told analysts during a recent earnings call that the Pleasanton, Calif.-based supermarket chain will be putting even more muscle behind its private-label of ferings if national brand vendors didn’t start rolling back prices – a strategy he insists is needed in today’ s recessionary times. Burd described the 1,000-basispoints gap in sales growth between national brands and private label as “extraordinary” and said “the biggest spread in modern times” is further proof of the need for food makers to lower prices. Burd may be more outspoken than his colleagues when it comes to exhorting the nation’s CPG manufacturers to lower prices, but he’s hardly alone. Retailers and industry experts confirm that the pricing tension between supermarket retailers and food makers has been exacerbated by the recessionary economy, shoppers’ willingness to trade down to lower-price options and the influx of more private label on store shelves. 24 STORES / MAY 2009 Private label is expected to reach 18.5 percent of retail sales at SuperVALU by the end of this fiscal year WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents for the Digital Edition of STORES Magazine - May 2009

STORES Magazine - May 2009
Executive Editor's Page
President's Page
Facts to Chew On
What Shoppers Think
Deals "R" Us
10 Things You May Have Missed
Numbers Worth Counting
Full Price/Markdown
Retail People
Cover Story: Brand X Power
Home Improvement
Credit Where Credit's Due
Locate, Locate, Locate
New Playbook
Staying in the Fast Lane
Clean and Green
Driven to Please
Farm System
Rx for Shrink
Zeroing Out Zombies
Rogues Gallery
Ounce of Prevention
Loeb Retail Letter
Chain Action
Optimism Rocks
ARTS Update
Point of View
Retail Crossword
Retail Industry Calendar
End Cap

STORES Magazine - May 2009