Store Label Products: Why Shoppers Are Choosing Them Over Big Brands

Are you one of those shoppers who used to think store label products were just cheap, lower-quality versions of the “real thing”? You’re not alone. For years, many people skipped over them in favor of big-name brands. But with rising prices and tighter budgets, more shoppers are giving store label products another look—and discovering that they can match or even beat national brands in quality, taste, and value.

Today, these once-overlooked products are winning loyal fans and taking a bigger share of grocery carts, shopping bags, and household budgets.

Intrigued and want to know more? Read on as we discuss the following:

What store label products are and how they differ from generic brands
Why shoppers are choosing them over big-name products
How retailers are upgrading their store label offerings
The impact of this trend on major brands and the retail industry

At the end of this article, you’ll know exactly why store label products are gaining ground—and what it means for the future of retail.

What are store label products?

Before anything else, let’s look at what store label products are exactly. These are products sold under a retailer’s own brand, often developed and manufactured either by the retailer itself or by a contracted supplier, and marketed exclusively through that retailer’s stores or online platforms. Examples can include:

Grocery: A supermarket’s own line of milk under the “Great Value” label, canned goods from “Kirkland Signature,” or snacks sold under “365 by Whole Foods Market.”
Apparel: A clothing line like “INC International Concepts” sold only at Macy’s, or “F&F” apparel available exclusively at Tesco.
Household goods: Store-branded cleaning products from “Up & Up” at Target, cookware from “Mainstays” at Walmart, or furniture under the “Hearth & Hand” line at Target.

While they may seem similar to generic brands—unbranded or minimally branded products offered as the lowest-cost option—there’s a key difference: store label products carry the retailer’s brand identity, packaging, and marketing, whereas generic brands usually have minimal branding and are positioned as low-cost, no-frills alternatives.

Why store label products are making a comeback

As mentioned, store label products are gaining more fans than ever—but why? Here are some key reasons:

Rising costs: With prices of everyday goods climbing, especially during periods of inflation, shoppers are actively looking for ways to stretch their budget. Store label products often deliver similar quality to national brands at a noticeably lower price, making them an attractive swap without feeling like a downgrade.
Better quality: Many retailers have invested in better ingredients, improved packaging design, and stricter quality control. The result? Products that not only match branded competitors but sometimes outperform them in taste, durability, or performance.
Brand loyalty to retailers: When customers have a good experience with a retailer—whether it’s great customer service, consistent stock, or a pleasant shopping environment—that trust tends to spill over into the retailer’s own branded products. If a shopper already believes in the store, they’re far more likely to believe in what that store puts its name on.

How retailers are elevating store label products

As more shoppers turn to store label products, retailers are investing heavily to make them stand out and keep customers coming back. The goal isn’t just to offer a cheaper option, but to create store label ranges that feel as thoughtfully developed and desirable as any national brand. This involves moves like:

Premium lines: Retailers are expanding store labels into categories like sustainable apparel, eco-friendly home goods, and high-performance electronics. For example, Target’s Project 62 offers modern, design-focused home goods exclusive to Target, and Best Buy’s Insignia provides smart TVs and appliances with advanced features at competitive prices.
Attractive branding and packaging design: Gone are the days of bland, utilitarian packaging. Retailers are investing in modern, eye-catching designs that hold their own against national brands. Target’s Room Essentials homeware line features clean, minimal designs aimed at younger shoppers, while John Lewis ANYDAY uses sleek, contemporary packaging and product styling to position its store label as both affordable and design-led.
In-store promotions and placement: Retailers know visibility is key, so they’re giving store label products prime real estate. Home Depot’s Hampton Bay lighting and patio furniture is showcased in lifestyle displays rather than just stacked boxes, while Trader Joe’s places its store label items—such as unique seasonings, skincare, and eco-friendly cleaning products—front and center with creative signage to encourage trial.

By improving quality, design, and visibility, retailers are strengthening the value of their own brands and deepening customer loyalty.

The impact on big brands

Store label products are no longer just budget alternatives; they’re direct competitors that have taken real market share from national brands. In the U.S., they outsell the top national brand in many supermarket product categories. That means in many aisles, shoppers are choosing the store’s own label over long-established names..

Shelf space plays a big role in this change. Retailers decide where products go, and their own labels often get the best spots—right at eye level—while big brands are moved to less visible shelves. To keep a foothold, some national brands have chosen to work with retailers instead of fighting them. Starbucks, for example, partnered with Costco to produce a Kirkland Signature coffee blend. Many well-known snack and cereal makers also manufacture products under store brands, allowing them to keep production steady while tapping into the store label market.

In other words, big brands are now in a battle for visibility, customer loyalty, and relevance. Those that can’t adapt risk losing shelf presence to products that cost less, sell well, and have the full promotional power of the retailer behind them.

What this means for the future of retail

Store label products are set for even stronger growth in the coming years. With adoption up 11 percentage points in 2025 compared to the year before, and 76% of shoppers naming price as the biggest draw, the shift toward store brands is likely to continue well beyond current economic conditions.

Retailers will double down on making these products more competitive, using faster product development cycles, sustainability initiatives, and data-driven insights to meet changing consumer tastes. E-commerce will be key, giving retailers unlimited digital “shelf space” to showcase their own brands, run targeted promotions, and launch online-only exclusives that test well before hitting physical stores.

Global expansion will also gain pace. Retailers with strong store brand reputations, such as Ald,i are already rolling them out in new regions, adapting packaging, product formats, and flavors to fit local markets. As these products gain ground internationally, the competition will reshape supply chains, spark more retailer–manufacturer partnerships, and raise the bar for innovation across the retail industry.

Final thoughts

Store label products are winning shoppers over because they deliver on what people really care about: good quality at lower prices from stores they already shop at. What began as people trying to save money during tough economic times has shown something bigger—shoppers don't see store brands as cheap knockoffs anymore, but as smart purchases that often work just as well or better than big-name products.

This shift benefits everyone involved. Shoppers save money without giving up quality, while stores build stronger relationships with customers, make better profits, and have more control over what they sell. This trend gives consumers more choices and pushes all brands, whether store labels or national brands, to offer better value and quality to stay competitive. For both shoppers and retailers, store label products have become a win-win solution that's clearly here to stay.