Store brands like Kirkland are winning the war for consumer wallets, squeezing out national brands

Billy Odell Tucker-Robinson Founder & Host — Banking With Billy Network • Intelligence Network • Data Science • AI Research • World News
Published: 2026-09-16T12:32:44.269Z • Permanent link

Walmart's success with its private label, Sam's Choice, is often cited as a prime example of the growing influence of store brands on consumer wallets. However, the phenomenon is far more widespread than that. Data from market research firm, IRI, reveals that store brands now control nearly 20% of the US grocery market, outpacing national brands in many categories. For instance, in 2020, Kirkland Signature, Costco's in-house brand, surpassed Tide as the largest laundry detergent brand in the United States.

Consumers are increasingly drawn to store brands due to their perceived value, quality, and convenience. According to a recent study by Kantar Worldpanel, 75% of American consumers say they are more likely to buy a product if it is a store brand. This trend is not limited to the US; in Europe, companies like Aldi and Lidl have successfully disrupted the traditional retail landscape by offering affordable, high-quality private label products. In the UK, the average household now spends over 20% of its grocery budget on store brands, a significant increase from just a decade ago.

Tobias Quatschau, a senior retail analyst at Kantar Worldpanel, attributes the rise of store brands to changing consumer behavior and preferences. "Consumers are becoming more price-sensitive and value-driven, which has led to a shift towards store brands," he explains. "Private label brands offer a more affordable alternative to national brands, while still providing high-quality products that meet consumers' needs.

Retailers are starting to take notice of the growing influence of store brands, and are adapting their strategies accordingly. Many companies, including big brands like Procter & Gamble and Unilever, are investing heavily in their private label offerings. This shift has significant implications for the Data Sources domain, where research communities and markets are increasingly focused on understanding consumer behavior and preferences. The rise of store brands has also led to a renewed focus on data analytics and insights, as companies seek to optimize their private label offerings and better compete with national brands.

The impact of store brands on the retail landscape is also being felt in policy environments. Governments are starting to take notice of the trend, and are introducing policies aimed at promoting competition and innovation in the retail sector. For instance, the European Commission has launched a series of initiatives aimed at promoting competition in the food retail market, including measures to improve transparency and reduce barriers to entry for new entrants.

The rise of store brands is part of a broader trend towards disruption in the retail sector. The past decade has seen the rise of e-commerce, the decline of traditional brick-and-mortar stores, and the emergence of new business models like subscription services and data-driven retail. This trend is not limited to the US or Europe; in countries like China and India, the retail landscape is being transformed by the rise of e-commerce and the growth of the middle class.