Spar warns of challenges amid private label boom
Increased competition in this booming market could pressure margins and lead to potential oversupply
The rapid growth of private label products in the retail sector is creating new opportunities but also significant challenges, Spar has warned, adding that increased competition in this booming market could pressure margins and lead to potential oversupply.
The retailer said in its annual report that while private labels were increasingly embraced by cost-conscious consumers, there was a risk that these products may fall short of evolving consumer expectations for quality and lifestyle alignment, prompting retailers to strike a balance between affordability, innovation and premium positioning to meet diverse shopper needs...
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