Woolworths to increase private-label products

Off the back of reports yesterday that Woolworths boss Grant O’Brien would be reassigning the company’s advertising contract, there are now rumours he will announce plans to double private-label products in stores.

He is also expected to announce the growth plans for the company, which is currently falling behind archrival Coles.

Experts believe the success of Cole is attributed to the way it portrays itself to always have the lowest prices, while Woolworths works harder on the ‘Fresh Food People’ aspect, leading many to see it as the more expensive, high-brow option.

According to research analyst IBISWorld, Woolworths’ private label products, including Macro and Woolworths Select, make up more than 20 per cent of the market, up 11 per cent from five years ago, while the supermarket giant’s own staples, including bread, milk and eggs, make up half.

Earlier this year, Australian manufacturer Heinz attacked the increase in private-label products, saying it created an “inhospitable environment” for local manufacturers.

The Australian Competition and Consumer Commission (ACCC) has also noted its concern about the impact it will have.

With all the controversy about the prevalence of private-label products, Australia is still well behind the US and UK.

The US has double the amount of supermarket-owned products in its stores, while the UK has three times as many.

Image: Planet Retail