The contribution of organic private label products to private label share outcomes

Purpose The growing demand for sustainable consumption motivates retailers to consider including organic private label products in private label assortments to attract and serve health and environmentally conscious consumers, while also possibly improving the image of the private label brand as well. This study aims to examine the impact of prioritizing organic private label products in private label assortments on private label share outcomes. Design/methodology/approach Theoretical predictions are empirically examined using a comprehensive store panel sales data set covering 50 distinct metropolitan markets in the USA from 2008 to 2011 in the yogurt product category. Findings Findings indicate that private label products may provide strategic value for certain retailers, based on a variety of private label assortment, national brand competition and retailer characteristic dimensions. Research limitations/implications This research serves as initial empirical evidence on how organic products may influence private label category share. Future research should consider additional product categories and geographic markets and also seek to understand consumer perceptual factors in more detail. Practical implications Retail managers can better understand the role that organic products play in private label portfolios. Originality/value While much previous work has examined how organic products sell relative to conventional products and a sizable literature has investigated private label brand strategy, little research has explicitly examined the role of organic products within private label assortments.