Private Label in Europe: Consistent Growth Across the Retail Landscape
Europe's private labels: a growing force in retail
Consumers feel sorry for a lonely banana

Researchers from German universities have found out that customers are more likely to pick up an individual banana, often left as a result of people tearing others from the bunch, if they are emotionally triggered.

The academics placed a sign in front of orphan bananas (individual bananas left as a result of people tearing others from the bunch) saying “we are sad singles and want to be bought as well”. On average, sales in single bananas went to 3.19 with the sad sign – an increase of 58%.

The researchers carried out the experiment in a major German supermarket chain, observing the purchasing behaviour of 3,810 customers over the course of 192 hours.

No more than 20 seconds to influence a buyer

The average time a consumer spends in front of the shelves is very short: between 4 and 20 seconds. Purchase decisions are quick and instinctive and are driven mainly by emotion rather than rationally.

Research by Professor Vincenzo Russo, IULM University, Milan shows how quick and instinctive purchase decisions are, driven mainly by emotion rather than rationality. The brain tends to trick us and create a kind of bias in our perceptions. The packaging, its colour or shape, the appearance of the product and many other factors can influence our perception in a way that is sometimes different from reality.

At PLMA’s upcoming Packaging conference on 30 January in the Hague, Steen Tjarks, President & Co-founder of design agency Tjarks & Tjarks will dive into the topic of “Psychology of Packaging: How Design Drives Consumer Decisions -  Look, Feel, Buy: The Power of Design in Consumer Choice for Private Brands”. For more information click here.

Inside the minds of Rapid Delivery shoppers

In Spain, retailer DIA and rapid deliverer Glovo have analysed consumers who use the service for deliveries “within 30 minutes”. The typical customer places an average of 1.4 orders per week, with a smaller basket size (€10 to €15) compared to customers using traditional e-commerce channels (€25 to €30).

The most purchased products are beverages, eggs, dairy, and fresh items such as fruit, vegetables, meat, and fish. These are followed by bakery and pastry products, frozen goods and drugstore and cleaning products. In terms of order time, Saturday is the most popular day, followed by Monday. Most orders are placed mid-morning or mid-afternoon.

The analysis also revealed a 23% increase in orders on Sunday, 1st September, marking the end of the summer holidays, compared to other Sundays. Similar peaks occur after Christmas and Easter holidays. In addition, during the Champions League semi-finals last season, orders surged by 33%.

Lidl’s parent teams up with Google to redefine Cloud sovereignty in Europe

Lidl’s parent company, Schwarz Group, is advancing its strategy of controlling its business operations by partnering with Google to deliver secure and sovereign cloud-based collaboration for German and European regulated industries.

Through this partnership, Schwarz Group’s StackIT, the retailer’s cloud provider, will offer client-side encryption for customers’ Google Workspace data. StackIT ensures that customer data remains within the European Union, with full redundancy provided by backups hosted solely in European data centres to meet demands for data protection, residency, and resiliency.

“Germany and the EU have until now lacked enterprise-grade cloud collaboration solutions that fully address the sovereignty requirements of regulated industries, including ensuring all data is secured and backed up on local soil with absolutely no opportunity for access by foreign nations or platform providers,” said Rolf Schumann, co-CEO of Schwarz Digits, the IT and digital division of the Schwarz Group. “Our partnership and new offering with Google Cloud will fill this gap with an entirely new business model.”

Client-side encryption means Google has no access to customers’ data. According to Schwarz and Google, this safeguards the sovereignty of not only Schwarz Group, but also all customers who value the independence of their operations, giving them full confidence that their data is always in their control.

“This new partnership will enable the companies of Schwarz Group to combine its leadership in digital transformation with Google Cloud’s strengths in productivity, collaboration and security, enabled by our cutting-edge AI,” said Sundar Pichai, CEO of Google and Alphabet. “Together, we are opening up a world of new, sovereign opportunities for European organisations to innovate and build on our joint solutions, accelerating a new era of innovation.”

Intermarché’s bold private label rebranding and growth plans

Intermarché (ITM) aims to increase its private label share of sales from 35% to 40% by 2026, representing an additional €2 billion in turnover. The number of private label brands will be reduced from 32 to 25, and the existing 9,500 SKUs will be redesigned. Currently, 85% of Intermarché’s own brands are manufactured in France, with 40% of products carrying a Nutri-Score A or B.

To enhance brand recognition, the new packaging will feature the Intermarché name in red and black on a white band at the top. The revamped products will gradually be appearing on the shelves starting March 2025. The facelift should be completed in March 2027.

The retailer is investing 10 million euros in the rebranding process. Alongside the review of its existing range, 350 new products are scheduled to be launched next year.

Discover the Top 50 European retailers of 2024

Flywheel’s annual Top 50 list of European food retailers reveals that four German retailers are among the five largest companies by turnover: Schwarz Group (1), Rewe Group (2), Aldi (3) and Edeka (5). The ranking was based on the retailers’ gross sales forecast for the entire 2024 financial year. Schwarz Group stands far above its pursuers with estimated revenues of 186 billion euros, equal to the amount as the combined turnover of second-placed Rewe (€97.1 billion) and third-placed Aldi (€89 billion). French retailer Carrefour ranks fourth with €73.8 billion and Edeka closes the top 5 with €73.2 in sales.

Following them in the ranking are Tesco (€72.7 billion), E. Leclerc (€50.5 billion), Ahold Delhaize (€43.3 billion), Intermarché (€43.2 billion) and X5 Retail Group (€41.9 billion). All but one retailer in the full top 50 list reported sales grow this year. The only exception was French retailer Casino, which saw a 20% decline after years of debt-fuelled acquisitions and a declining market share. The list was published by Lebensmittel Zeitung.

Record number of international suppliers at PLMA's US Show

Responding to American consumers' increasing appetite for food products featuring ethnic and international ingredients and flavors, PLMA will present retailers with a record 900 suppliers from more than 60 countries at its 2024 Private Label Trade Show, November 17-19, Chicago.

The Show floor will offer 52 country and regional pavilions, another record, from North and South America, Europe and Asia, to enable buyers to source new and innovative products for today’s more discerning shoppers. New pavilions include Morocco, Poland, Vietnam, Portugal and Costa Rica. There are also expanded groups from Australia, Canada, Chile, France, Greece, Guatemala, Italy, Peru, Spain, and Ukraine.

Retailer apps in Germany are widely used, save money

A study by the consulting firm Simon-Kucher reveals that 80% of customers in Germany already use retailer apps, with this figure reaching as high as 96% in the drugstore sector. The survey, which involved 1,000 consumers, explored how app usage influences shopping behaviour.

The primary motivation for using these apps is saving money. Over three-quarters of respondents (83.2%) said the apps make them more aware of discounts, while 73.1% reported that they are able to make cheaper purchases through the apps. About half of the participants indicated that they shop more frequently and in greater quantities using retailer apps. Additionally, most respondents noted that the apps improved the efficiency of their shopping experience and overall satisfaction.

These apps also encourage users to explore new products. Features like product recommendations (55.7%) and discounts (64.4%) prompt users to try new items, although discounted products tend to be added to carts more often than those simply suggested by the app.

In terms of in-app purchase incentives, personalized discount coupons on specific items, volume discounts, free products, and bonus points were the most favoured. In contrast, digital flyers and competitions were significantly less appealing to users.