Implication for the Retail Industry

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Issue:

Business

 

Written by:

Ramona K

 

Date added:

March 26, 2013

 

Level:

University

 

Grade:

A

 

No of pages / words:

2 / 558

 

Was viewed:

5965 times

 

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Essay content:

However, department stores risk opposition from national brands if such private labels create too much competition. If private labels are to be expanded, they should be of higher quality than the norm. They should also be offered in a wide range of categories, to decrease advertising costs. Article Summary Department stores have traditionally used private labels on the selling floor as a way to provide a low-cost alternative to consumers...
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However, they may be expanding and developing more private labels to replace those national brands that have been falling behind. Private labels are helpful to department stores because they increase margins. On average, private label margins are 6-10% higher than national brands. Another benefit of private labels is one not offered by brand manufacturers...
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