President’s Choice from Loblaw. Amazon Essentials clothing. Retailers are rolling out private-label house brands to push rivals off shelves
. She is the executive director of McMaster University’s master of public policy program and co-author of the forthcoming bookA private-label product is one that a retail chain, such as Sobeys or Walmart, produces through a third party but sells under its own brand name. This type of item is usually offered exclusively by the company that owns it.
House brands give retailers an unfair advantage. Most grocery chains charge independent suppliers slotting fees and other additional costs. These chains can therefore earn more from their own brands while still offering a cheaper price as they make it more expensive for competitors to access shelf space.
Now, firms can copy how Amazon.com Inc. leverages data to help it develop similar private-label products. The Wall Street JournalAmazon has spied on sellers and used data about their sales, costs and suppliers to help it develop imitations under AmazonBasics or one of its other private labels. Any company that owns and operates a marketplace can similarly entrench itself, exploiting a built-in advantage.Over time, concentration has led to large, dominant retailers.
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