Private label choices
Mass-market private label choices increase in major categories
By Reyne Rice -- Playthings, 12/1/2004
With more than 30 new private label brands offerings among the top five toy retailers, the total of private label brands is just shy of 100. In 2003, 64 brands were documented.
No longer relegated to an aisle of low-priced generic product offerings on the outskirts of the toy department, the store brands are carrying exclusive names and are co-existing side-by-side with manufacturer branded products in toy aisles.
Retailers today are bolder, inter-weaving the store brands with the branded goods, advertising their own brands and in some cases, asking private label suppliers for co-op advertising dollars to support their in-store brands.
To meet the challenges of private label brands competing for prime shelf space allocation and consumer awareness, the toy industry has had to re-define the way it does business.
Which strategies have been most successful in view of this new dynamic?
Manufacturers claim that the strongest brands are those that have strong consumer recognition, a loyal consumer base and a distinctive point of difference that sets them apart from generic store brands.
Whether it is a special patented feature, a TV-demonstrable and TV-promoted lead item, or a strong performance and quality tradition, innovation is key, they report.
| Company, Headquarters | Estimated 2003 Playthings Sales in Millions |
| 1 Wal-Mart Bentonville, Ark. | $9,435 |
| 2 Toys R Us Paramus, N.J. | $6,345 |
| 3 Target Minneapolis | $2,530 |
| 4 KB Toys Pittsfield, Mass. | $1,650 |
| 5 GameStop Grapevine, Texas | $1,566 |
| 6 Kmart Troy, Mich. | $1,345 |
| 7 Electronics Boutique West Chester, Pa. | $1,191 |
| 8 Best Buy Eden Prairie, Minn. | $972 |
| 9 Circuit City Richmond, Va. | $418 |
| 10 Toysrus.com Ft. Lee, N.J. | $355 |
| 11 Meijer Grand Rapids, Mich. | $350 |
| 12 American Girl Middleton, Wis. | $345 |
| 13 Big Lots Columbus, Ohio | $267 |
| 14 JC Penney Plano, Texas | $260 |
| 15 Costco Issaquah, Wash. | $255 |
| 16 Army/Air Force Exc. Serv. Dallas | $243 |
| 17 FAO King of Prussia, Pa. | $240 |
| 18 Build-A-Bear Workshop Saint Louis | $202 |
| 19 Sears Hoffman Estates, Ill. | $200 |
| 20 Sam's Club Bentonville, Ark. | $198 |
| 21 ShopKo Green Bay, Wis. | $180 |
| 22 Fred Meyer Portland, Ore. | $160 |
| 23 Walgreen Deerfield, Ill. | $160 |
| 24 Dollar General Goodlettsville, Tenn. | $155 |
| 25 Michaels Stores Irving, Texas | $155 |
| All Playthings sales information, except for publicly
held companies that break out line-of-business sales for toys, are Playthings
market research estimates. All data for calendar year ended Dec. 31, 2003,
fiscal year end or trailing 12 months closest to date. Source: Playthings market research, Reed Business Information |
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| Author Information |
| Reyne Rice is a consultant to the Toy Industry Association. |
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