The retail landscape is undergoing a seismic shift. As digital disruption accelerates and consumer expectations evolve, a new battleground has emerged—one where retailer-owned brands are redefining the rules of engagement for customer loyalty, data ownership, and brand value. This trend is not simply a rebranding of traditional private label; it represents a fundamental transformation in how retailers leverage their unique assets to compete, innovate, and win.
Historically, private label products were designed to mimic national brands at a lower price point, with little investment in differentiation or marketing. Today’s retailer-owned brands are a different breed. They are unique, high-value offerings with distinct identities, robust marketing strategies, and a clear focus on meeting unmet customer needs. Retailers like Target, Kroger, and Bed Bath & Beyond have launched multiple owned brands that now generate billions in annual sales, with some—such as Target’s Good & Gather—surpassing $2 billion alone.
What sets these brands apart is not just their scale, but their strategic intent. Retailers are no longer content to simply stock shelves with other companies’ products. Instead, they are building brands that can stand on their own, both within their own stores and, increasingly, in external channels and international markets. For example, Kroger’s Simple Truth line is now available to Chinese consumers via TMall, and Bed Bath & Beyond’s exclusive brands are being sold through other retailers, including Kroger.
The secret weapon behind the success of retailer-owned brands is data. Unlike traditional CPGs, which often rely on focus groups and limited consumer panels, retailers have access to vast troves of real-time shopping data from millions of customers. Every transaction, search, and loyalty program interaction provides actionable insights into what customers want, what gaps exist in the market, and how new products might perform.
This data-driven approach enables retailers to:
Retailers’ direct relationship with customers also means they can test, iterate, and scale new brands with unprecedented speed and precision. The result is a virtuous cycle: better data leads to better products, which in turn generate more data and deeper customer relationships.
The rise of retailer-owned brands is not just a threat to shelf space—it’s a challenge to the very foundation of the traditional CPG model. As retailers become both the gatekeepers and the competitors, CPGs must rethink their approach to brand building, distribution, and customer engagement.
Leading CPGs are responding by:
Nike’s transformation is a case in point. By shifting from a wholesale model to a D2C focus, Nike has grown direct sales from 16% to over 40% of total revenue, while enrolling more than 100 million consumers in its Nike Plus membership program. This shift not only drives sales, but also creates a rich data asset that fuels ongoing innovation and loyalty.
The distinction between retailer and brand is rapidly dissolving. Retailers are building brands that can compete on quality, innovation, and emotional connection—not just price. At the same time, CPGs are becoming retailers in their own right, launching D2C platforms and experiential stores to own the customer relationship.
This convergence is reshaping the competitive landscape:
Digital platforms are the connective tissue that enables this transformation. Customer Data Platforms (CDPs), advanced analytics, and AI-driven personalization allow both retailers and CPGs to deliver relevant, timely experiences across every touchpoint. Loyalty programs, once simple discount schemes, are now sophisticated engines for data collection, engagement, and value creation.
Retailers and brands alike must ask:
The era of retailer-owned brands is here, and it is fundamentally changing the rules of retail and CPG. Success will require more than great products—it will demand a relentless focus on customer experience, data-driven innovation, and the ability to build meaningful, direct relationships with consumers.
For retailers, the opportunity is to leverage their unique assets—data, access, and trust—to create brands that resonate and endure. For CPGs, the imperative is to reinvent, embracing new models of engagement and value creation. In this new battleground, those who own the customer relationship—and the data that underpins it—will be the ultimate winners.
At Publicis Sapient, we help retailers and brands navigate this transformation, harnessing the power of data, digital platforms, and customer-centric strategy to build the brands of tomorrow. The future belongs to those who can blend digital and physical, harness data and AI, and deliver experiences that move people. Are you ready to compete—and win—on the new battleground of customer loyalty and data?