How does private label impact retail & manufacturer profit?

Globally retail chains run on razor-thin margins competing brutally on price to get the customer through the doors. The ones that have emerged winners in the battle have found innovative ways to thrive, like CostCo which uses a combination of its loss leaders (rotisserie chicken) and membership fees to win and Walmart that thrives on the back of its scale and every day low pricing consistency. A new tool these players are now honing is their own private labels - basically developing their own brand for regular staples they sell in their stores.

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