Word: brandsness
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The National Retail Merchants Association estimates that private labels account for a phenomenal 60% of the annual $42 billion in department-store sales. More than 90% of Sears, Roebuck's volume is in its own private labels, making it the largest outlet for such brands. In supermarkets, 10% to...
Look Alikes. The quality of many private-label items is equal to or only slightly below that of the high-priced "name" brands. Leading corporations-Heinz, Armstrong Rubber, Westinghouse and many others-are allocating more and more of their output to products that are sold under cut-rate private labels...
About two-thirds of Whirlpool's sales come from house brands in Sears, Roebuck and other stores. General Electric makes private-brand appliances for J.C. Penney; refrigerators sold under Penney's Penncrest labels are strikingly similar to G.E.'s models but are usually priced lower. Sears'...
Well-known producers even supply goods for their competitors' major brands. One such arrangement came to light after the highly unusual botulism death of a man who had eaten vichyssoise made by Bon Vivant Soups of New Jersey. When the Food and Drug Administration ordered the recall of all...
Exclusive Edge. Private labels usually return a fatter profit to retailers than national brands. The savings come from the elimination of costs for national advertising, sales forces and distribution (the store deals directly with the manufacturer).