James P. Burnes, Michael Pepe

(Siena College, USA)

 

 

Abstract: The proliferation of store brands in American food retailing has been evident for several years. The purpose of this study is to analyze product category price disparity of store brand and national brand products and impact on market share and profitability. In this study, within an empirical analysis based on scanner data from a supermarket retailer, sixteen dairy product categories are investigated over a period of three years (from June 2008 to June 2010). The empirical results indicate that while pricing of store brand has impact on market penetration, market share, profit percentage, and profit in dollars, there are other factors that impact these areas The major implications for retailers is that lower store brand pricing is of particular importance to market share and profitability.

 

 

Key words: pricing; store brands; national brands; category profitability

 

JEL codes: D4, L1