As more mergers take place, private label can take advantage of economies of scale, add more products, and lower the price. Private label manufacturers and retailers can take heart, however, if Europe is an indication of where the U.S. is headed.
European supermarkets tend to be more consistent than their counterparts in the U.S., some say.
Thus, European retailers are able to create consistency in their private label. U.S. retailers may not be bringing European models to their stores yet, but some are beginning to employ new tactics. Several chains across the country are publishing magazines which promote their store brands. Still, Burt Flickinger III, managing director of Reach Marketing, says that retailers should invest more in their private label programs. In the U.K. and in Canada there is much more devoted to sampling, couponing, direct-mail marketing, and other advertising.