Friday, July 17, 2009

Loblaw Ups the Ante on Private Label

Loblaw in Canada just announced that it is offering a money-back guarantee for shoppers who switch from select leading brands to President’s Choice private-label items at all of its stores in Canada.

Loblaw provided price comparisons in their circular today, showing how much more affordable their comparable President’s Choice items are versus national brands.

Shoppers who buy the President’s Choice items may return them for a full refund, if not satisfied, through August 7th.

It will be interesting to see how well this promotion does, and how shoppers respond. Does this spell the beginning of the end for national brands? To be sure, there are some brands consumers will always pay more for. Which ones - and whether Loblaw can change some behaviors and ultimately change shoppers' minds - remains to be seen.