# Kroger's private label shift challenges brand loyalty

> Kroger's private label strategy targets your childhood brands with value-driven alternatives
- Title: Kroger's private label shift challenges brand loyalty
- Summary: Kroger's private label strategy targets your childhood brands with value-driven alternatives Kroger's private labels now outperform national brands in key…
- Keywords: kroger, private label, costco, kirkland signature, nfl, seahawks, seattle, business, finance, Kroger's, private, label
- Source: Yahoo Finance — https://finance.yahoo.com/small-business/articles/kroger-borrows-key-strategy-costco-143700262.html
- Published: 2026-09-16T14:37:00+00:00
- Read time: 1 min
- Topics: kroger, private label, costco, kirkland signature, nfl, seahawks, seattle, business, finance
## Private label dilemma
Consumers mix feelings about private label brands, buying Kirkland for medicine but wary of food products

> I'll buy Costco's Kirkland brand for over-the-counter medicine but am wary about using private labels for food
## Consumer preferences shift
68% of Americans see private labels as better alternatives to national brands with 69% believing they offer good value

> 58% of consumers don't care whether a product is national or private label, they simply buy what they need
## Kroger's private label growth
Kroger's private label sales increased $420 million in produce, meat, seafood, and prepared foods over the last year

> Private selection sales increased more than 14% during the quarter, driven by strong customer response to new products
## Kroger's strategy
Kroger CEO Greg Foran says private labels deliver value without compromising quality, with 50 basis points higher penetration

> Customers are looking for value but not willing to compromise on quality. Our brands answer both
## Costco's Kirkland model
Costco's Kirkland Signature brand accounts for $86 billion in annual sales, representing a third of Costco's total revenue

> Around six hundred products globally carry the Kirkland Signature label in categories ranging from batteries to pet food
## Private label market growth
US private label sales reached $330 billion with 24% unit share and 23% dollar share of the market

> Private label sales reached three hundred thirty billion dollars capturing twenty-four percent unit share and twenty-three percent dollar share
## Key takeaway

Kroger's private labels now outperform national brands in key categories while maintaining quality