Private Labels
In addition to investing in store renovations, early on Weston earmarked $40 million for the development of private label brands:
“We found it essential to change products and services before redesigning their image. For example, nothing is more disappointing for a consumer than to buy a private label product because of the attractiveness of its redesigned label and then find that the same quality that had disappointed her previously had not been improved."
In March 1978, Loblaw launched “No Name”, a line of 16 generic products in simple black and yellow packaging with advertised savings of 10 to 40 percent over the national brands. Within weeks, some no name items had sold out. Months later, the company opened its first No Frills store, featuring no name, along with a limited selection of 500 items at discount prices. Consumer response was so favourable that it began converting older, more marginal stores to No Frills outlets.
As the product line-up expanded, Loblaw soon began experimenting with a variety of gourmet no name items. When sales of “President’s Blend Gourmet Coffee” started outselling every other grocery item on the shelf, the decision was made to introduce a premium line of store brand products. In 1984, “President's Choice” was launched, with each item endorsed by Loblaws President Dave Nichol and promoted through the popular advertising supplement Dave Nichol’s Insider’s Report. No Name and President’s Choice went on to account for almost a third of grocery item sales at Loblaw.
Read more about this topic: Galen Weston
Famous quotes containing the words private and/or labels:
“Crotchless trouser allows wearer to show private parts in public. Neoprene-coated nylon pack cloth is stain resistant, water repellent and tickles thighs when walking. Tan-olive shade goes with most fetishes. Adjustable straps attach to belt for good fit and easy up-down. Pant is suitable for fast exposures as well as extended engagements. One size fits all.”
—Alfred Gingold, U.S. humorist. Items From Our Catalogue, “Flasher’s Pants,” Avon Books (1982)
“In the range of things toddlers have to learn and endlessly review—why you can’t put bottles with certain labels in your mouth, why you have to sit on the potty, why you can’t take whatever you want in the store, why you don’t hit your friends—by the time we got to why you can’t drop your peas, well, I was dropping a few myself.”
—Mary Kay Blakely (20th century)