Retailers’ private brands business picks up pace

Shoppers Stop saw its highest-ever sales in April-June quarter as private brands grew 29%, despite the fact that the average selling price for its private brands increased 50% during the quarter, the company said in its post-earnings call.

Retailers’ private brands business picks up pace
Reliance Retail said its own brands business saw six times year-on-year growth during April-June and now accounts for 30% of its sales.

By Kritika Arora

Lifestyle retailers are betting big on the growth of private brands and labels given the strong growth they have seen in the last few months. For some retailers, especially in apparel category, growth has been in double digits, mainly because of consumers shifting to lower-priced products with inflation squeezing their wallets, according to analysts.

For instance, Shoppers Stop saw its highest-ever sales in April-June quarter as private brands grew 29%, despite the fact that the average selling price for its private brands increased 50% during the quarter, the company said in its post-earnings call.

The company’s volumes for private brands doubled in kidswear during the quarter, followed by women’s wear and expects total volumes to increase ahead of the business volumes.

Going ahead, Venu Nair, managing director at Shoppers Stop, said this is an area where the company will continue to invest and expects it to grow strongly. “Some of the new stores that we have opened, the overall private brand mix within apparel is upwards of 30%, so that just gives you an indication of the direction we are going in,” he said.

Similarly, Reliance Retail said its own brands business saw six times year-on-year growth during April-June and now accounts for 30% of its sales.

For Nykaa, in the beauty and personal care category, gross merchandise value (GMV) of its own brands — roughly 10 brands in the portfolio — was `166 crore of GMV in April-June. This accounted for roughly 11.2% of the total Nykaa.com and Nykaa BPC GMV, and reflected a 95% growth year-over-year, the company said in its earnings call.

Nykaa is expanding some of its brands into international markets such as the UAE, Mauritius and the United States, having new launches and is creating content to support new launches and own brands through digital and non-digital marketing campaigns, it said.

Similarly, Aditya Birla Fashion and Retail is also expanding its private label portfolio under Pantaloons with new launches, addressing diverse spaces like casual wear and innerwear.

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