The Digimarc Blog

Private Label Gains, Reduced Shopper Density

This is the second in a series of blogs highlighting some of the challenges grocery retailers are facing with COVID-19 and how the Digimarc Platform can help mitigate obstacles related to efficiency, employee health and other issues. Read our first installment on scan-and-go.

Limits on the number of shoppers in stores and an increase in online shopping is beginning to have an impact on grocery sales. Yet one of the unexpected consequences of this “new normal” is that shoppers are choosing private label products in greater numbers; according to Storebrands, “the private label category rose about a third more (in Q1) in both dollar and unit sales compared to national brands.”

The data indicates shoppers are behaving differently during the pandemic, and are more focused on obtaining specific products regardless of the brand. This change presents a great opportunity for retailers who can accelerate products through the supply chain and quickly get them on shelves.

Retailers had already been investing heavily in private label before COVID-19, and this development will surely accelerate the trend.

And when you combine increased private label demand with the requirements of social distancing, you have a challenging operational mix. Social distancing dictates a reduced density of shoppers, which translates into lower sales per square foot. To get more from less—while keeping everyone safe—shoppers must be able to enter stores and quickly find the items they need, and then exit with as little front-end friction and person-to-person contact as possible.

The Digimarc Platform can help grocery retailers reduce friction and transform sluggish retail store operations by supporting:

Digimarc delivers a safe and touchless store experience for both shoppers and employees. Learn more about how we can help you get started by receiving a free retail tech assessment.





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