The grocery industry is experiencing a seismic shift. Once dominated by national brands and traditional private labels, the sector is now witnessing the rapid ascent of retailer-owned brands—unique, data-driven offerings that are redefining value, loyalty, and competitive advantage. This transformation is powered by the convergence of first-party data, digital platforms, and a relentless focus on customer experience. As grocers seek new revenue streams and differentiation in a crowded market, retailer-owned brands have emerged as the new battleground.
Historically, private label products were designed to mimic national brands at a lower price, with little marketing beyond shelf placement. Today’s retailer-owned brands are fundamentally different. They are built on deep customer insights, offer distinct value propositions, and are supported by robust digital marketing and loyalty strategies. Leading grocers are launching exclusive brands that not only compete with, but often surpass, national brands in quality, innovation, and customer engagement.
Retailers like Target and Kroger have demonstrated the power of this approach. Target’s portfolio of owned brands has generated billions in revenue, while Kroger’s Simple Truth line has become a global success, even reaching international markets through digital channels. The key to this success? Data. Retailers have access to millions of daily shopping signals, enabling them to identify trends, develop products that meet real customer needs, and launch with unprecedented speed and scale.
The rise of retailer-owned brands is inseparable from the digital transformation sweeping the grocery sector. As e-commerce has grown from a marginal channel to a core driver of sales—now accounting for 12-15% of grocery revenue—retailers have invested heavily in digital platforms, automation, and data infrastructure. This digital foundation enables:
Personalization is at the heart of the retailer-owned brand revolution. Advanced customer data platforms (CDPs) and AI-powered analytics enable grocers to deliver:
Loyalty programs are also evolving. No longer just about points and discounts, modern loyalty initiatives leverage data to create meaningful, ongoing relationships. For example, Nike’s membership program has driven a dramatic shift toward direct-to-consumer sales, a model grocers are increasingly emulating with their own brands.
Digital marketing is essential for building awareness and driving trial of retailer-owned brands. Grocers are harnessing the power of social platforms like TikTok and Meta, integrating their product catalogs with these channels to reach new audiences and inspire purchases. Real-time analytics and advanced targeting ensure that marketing efforts are both efficient and effective, maximizing ROI and accelerating brand growth.
Publicis Sapient, in partnership with Salesforce, is at the forefront of this transformation. By bringing together strategy, technology, and deep industry expertise, we help grocers:
Our work with leading grocers and consumer brands has delivered measurable results, from increased revenue and operational efficiency to stronger customer loyalty. For example, a global retailer partnering with Publicis Sapient achieved a 35% improvement in e-commerce order picking rates and $500M in incremental international grocery e-commerce revenue by modernizing its digital and supply chain operations.
To capitalize on the rise of retailer-owned brands, grocery executives should:
With decades of experience in grocery and digital business transformation, Publicis Sapient is uniquely positioned to help grocers win in the new era of retailer-owned brands. Our SPEED model—Strategy, Product, Experience, Engineering, and Data—ensures that every engagement delivers measurable value and sustainable growth.
Ready to unlock the full potential of your retailer-owned brands? Let’s start the conversation.