Private Label Offer Types

Published on: March 20, 2017
By: Market Track Insights

Last week, we wrote about private label share of health and beauty care circular ads, and found some distinct shifts in how retailers are promoting their private labels this year compared to last year. Today, we will explore HOW retailers are promoting their private label HBC products, with a special focus on the offer types and overlays retailers are using to draw customers to their brands, rather than national brand alternatives. Specifically, we looked at the top three drug stores – CVS, Walgreens, and Rite Aid, and reviewed the top offers each retailer uses to promote their HBC store brands.

In the chart below, you see that buy one, get one 50% off was the most common offer type across all three retailers. Over the past 24 months, nearly 60% of Rite Aid’s private label HBC promotions featured a BOGO 50% off.  Buy one get one (or BOGO) and other buy/get offer types were also popular among the drug stores. A quarter of CVS’ offer types in the HBC category were in the ‘other buy/get’ promotional group, and almost 15% of Walgreens’ offer types were BOGO.

Some examples of these promotions are shown below. In order to compete with an increasing number of national brand alternatives, retailers have worked to find ways to differentiate their store brands on a week to week basis. Circular promotions offer an opportunity to do just that, and by offering incentives like BOGOs and other overlays, retailers are positioning their brands favorably from a cost perspective.

Private Label Promotions.jpg

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