Friday, February 16, 2007

Private labels are the way to go

Retailers are increasingly shifting to private labels to control costs and margins. Companies such as Pantaloons, Westside, Ebony and Shoppers' Stop are adding to their private label in an effort to improve margins as well as increase the average bill size. With overhead costs such as real estate increasing substantially, retailers are looking at all other factors that determine their profitability. Private labels can also meet customer expectations as they are often based on customer requests and perception and are usually targeted at specific customer groups and categories, such as yoga wear, women's luggage etc. The big difference in private labels of today is the improvement in quality.

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