Dollar Stores Increase Investments in Private Label Products

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As consumers continue to seek out private label brands to make their grocery dollars go further, dollar stores are expanding their offerings of owned brand products. Dollar stores are increasing investments in private label products to offer a high level of value to cost conscious consumers and open up new avenues for differentiation and growth.

According to Circana sales data provided exclusively to PLMA, store brands reached all-time highs in both unit and dollar share during the first six months of 2024, compared to the same period a year ago. Total store brand sales for the six months were $121 billion, and PLMA estimates that if sales continue at the current rate for the rest of the year, total store brand revenue for 2024 will exceed a quarter trillion dollars, setting a new record for annual sales.

Investments in store brand products by dollar stores are helping fuel sales of private label products. Dollar General announced last year that it was expanding its private label brand, Clover Valley, debuting more than 100 new items including a wider selection of sauces, condiments, entrees, sides, snacks and more. Family Dollar also continues to expand private brand offerings, having launched more than 125 new private brand items last year.

The development of new private label products like these is helping dollar stores expand their customer bases and drive growth in the grocery category.

According to Numerator’s Private Label Trends Tracker report, store brands from both Dollar Tree and Dollar General accounted for four of the top 15 fastest-growing private label brands. Numerator data also revealed that private label products account for 29% of Dollar Tree’s overall sales volume and 17% of Dollar General’s sales volume.

Nearly all U.S. households purchased private label products in the grocery category over the last year. When purchasing private label grocery products, consumers are not only evaluating these products for value, but sustainability as well. As sustainability increasingly drives purchase intent, it is critical for brands to make their private label products and packaging more environmentally friendly.

The shift toward sustainability presents a significant avenue for differentiation and growth for private label products offered by dollar stores and other private label brand owners. A report by consumer intelligence company NIQ notes that, “by adopting eco-friendly practices in sourcing, manufacturing, and packaging, private label brands can appeal to environmentally conscious consumers seeking sustainable alternatives.”

The EEASY Lid is the sustainable, accessible packaging solution dollar stores and other private label brand owners need to differentiate their products from the competition and drive customer loyalty. As private label products continue to multiply on store shelves, brands need packaging innovations like the EEASY Lid – the first jar lid innovation in 80 years – to make their products stand out in an increasingly crowded market.

Let’s talk about how the EEASY Lid can drive sales for your private label product. Contact us today.