As in past recessions, consumers are shifting their spending from brand names to private label/store brands. Given today's price sensitive consumer, manufacturers are going to have a difficult time, just when they need consumers to spend more. Money quote in my book:
"Retailers have been talking about destocking, taking out the No. 3 or No. 4 brands, for more than a decade," said Clorox Co. Chairman-CEO Don Knauss at CAGNY. "We're finally starting to see that happen." Walmart, particularly, is aggressively looking to winnow brand assortments and category footprints in some cases, he said."
Read the rest of the article here at Advertising Age.
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