S8 E5: Cart Promo Hacks, Old School vs. New School DTC Brands, and Capitalizing on Private Labels
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Retailers' Obsession with Celebrity and Private Label Brands
Retailers like Walmart have been focusing on celebrity brands to attract new foot traffic into their stores. Walmart and other retailers prioritize celebrity brands because they bring in increased cart value from customers. Retail channels like Walmart excel in margins, knowing they can buy products at a lower price and sell them for a profit. In contrast, D2C brands emphasize loyalty, leading retailers to develop their own private label brands to capitalize on customer trust. Retailers such as Trader Joe's, Walmart, Target, Costco, and Amazon benefit significantly from their private label brands, with Trader Joe's generating 85% of its sales from such products. Costco and Trader Joe's source products from suppliers under their own brands, while Walmart recently launched its largest private label brand in two decades.
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