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Tuesday, October 20, 2020

Lockdown: Retailers witness spike in sale of private labels as supply lines disrupted

Future Retail and Metro Cash & Carry have witnessed a spike in their private labels as supply lines from other manufacturers are disrupted amid the lockdown. The retailers said their in-house brands in essential categories such as staples and food have witnessed over two-fold jump in sales during the period of lockdown.

Due to production shortage and transportation from other manufacturers, the retailers have pushed their private labels to fill the gaps in the supply chain and also introduced new products under their private labels.

Retailers are also now extending their private labels in categories such as packed foods and beverages, a segment which is largely dominated by the leading FMCG companies, after seeing a good response from the customers during this crisis.

Arvind Mediratta, MD & CEO of Metro Cash & Carry India told PTI that their private label brands have witnessed encouraging growth in the past few weeks and they have been able to cater to their customer needs through their own brands. In their own brands, they have the flexibility to launch products and packs based on their target groups.

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In almost all essentials categories ranging from – pulses, flours, rice, oil amongst others and  categories in personal and home care products such as hand wash, sanitiser, and cleaners, the company has ramped up capacities to ensure availability of stocks at its stores during the lockdown.

Mediratta added that their own brands under categories such as personal care, FMCG processed food, snacking , tea are growing over 100% and groceries like rice, flour, oil over 150%.

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