Retailers continue to use Private Label Merchandise to highlight their “value message” and also support gross margin improvements, but economic conditions have hampered the ability of small and mid-sized retailers’ ability to grow that side of their business. Not surprisingly, Retail Winners, or those who historically outperform their peers and inflation, have been most aggressive in growing that part of their assortment.

Business Challenges have remained surprisingly unchanged over the past three years, a legacy from the era of reverse auctions and bidding events, where demands for low costs drove manufacturers to cut quality corners. Retailers still hope to find and keep dependable partners to support improving inconsistent merchandise quality. However they lack the processes and tools to confirm that expected improvements actually occur.

This benchmark highlights the tools and techniques being investigated and adopted by Retail Winners, while empahsizing opportunities missed across most of the retail landscape.