How Retailers PromoteTheir Own BrandsReview of Private Brands PromotionsNovember, 2011

Topics Covered

• Private Brand Share of Promos Vs. Year Ago

• Private Brand Ad Support Across Departments

• Top Categories Promoting Private Brands

• Top Retailers Promoting Private Brands

• Private Brand Web Promotions

Private Brand Share of Promotions Vs. Year Ago

All De-partments

Grocery General Merchandise

HBC Non-Food Grocery

19.0%19.7% 19.7%

15.4%

17.3%18.5% 19.0%

20.3%

13.9%

15.9%Year Ago Current

Source: ECRM, 52 Weeks Ending 10/22/2011

Private Brand Share of Weighted Retail Ad Support

Private brand share of ad support is down across all departments except general merchandise.

Percent of Private Brand PromotionsBy Product Segment

Fresh Foods20.1%

Dry Grocery13.4%

Grocery Perishable10.3%

Apparel16.3%

Housewares10.8%

Other Gen Merch13.8%

Health & Beauty12.4%

Non-Food Grocery2.9%

Share of Total Private Brand Weighted Ad Support

Source: ECRM52 Weeks Ending 10/22/2011Excludes Unbranded Promos

Food segments represent 43.8% of all private brand promotions

Categories with the Most Private Brand Promos

BeddingBeef

Women's Casual ApparelCheeseEntreesChicken

Frozen Prepared FoodMen's Casual Shirts

PorkKids' Casual Apparel

Frozen SeafoodInternal Analgesics

Breads&RollsHand Tools&Accessories

Deli Meats

3.40%3.16%

2.99%2.22%

1.83%1.66%

1.30%1.29%1.27%

1.18%1.14%

1.09%1.05%1.03%1.02%

Share of Total Weighted Private Brand Circular Ads

Source: ECRM, 52 Weeks Ending 10/22/2011

Surprise! Bedding products represent 3.4% of weighted retailer ad support.

Categories With Over 90% of Ads Promoting Private Brands

Latex Gloves

Alcohol/Peroxide

Kitchen/Dining Room Furniture

Photo Processing Services

Dorm Furniture

Beach Furniture / Accessories

Vehicle Batteries

Cushions & Hammocks

Picnic, Serveware, Drinkware

Holiday Candles

100.0%

100.0%

99.3%

96.6%

96.1%

95.9%

95.8%

95.4%

94.9%

92.1%

Private Brands Share of Category Ads

Source: ECRM, 52 Weeks Ending 10/22/2011Excludes Some Smaller Categories

Excludes Ads for Unbranded Products

Categories Increasing Private Brand PromotionsYear Ago Current Share Pt

Category PB Share PB Share ChangeAnti-Diarrheal 34.2% 76.0% +41.9 ptsKids' Boots55.9% 84.9% +29.0 ptsFlower Pots & Planters 54.2% 82.8% +28.6 ptsAllergy Liquids 26.2% 54.6% +28.4 ptsInline Roller Skates & Access 23.7% 51.3% +27.6 ptsShelving & Hooks 1.2% 27.4% +26.1 ptsHand Vacs 0.0% 25.6% +25.6 ptsEye Medication/Ointment 3.7% 27.7% +24.0 ptsFree Weights 16.5% 37.3% +20.8 ptsDoll Accessories/Clothes 7.3% 26.7% +19.5 ptsTrail Mixes 32.5% 52.0% +19.4 ptsPhoto Processing Services 78.4% 96.6% +18.2 ptsLighting 61.2% 79.3% +18.1 ptsChildren's Analgesics 44.9% 62.8% +17.9 ptsFlashlights 16.1% 33.8% +17.7 pts

Source: ECRM, 52 Weeks Ending 10/22/2011Excludes Some Smaller Categories

Categories Running FewerPrivate Brand Promotions

Year Ago Current Share PtCategory PB Share PB Share ChangeFloor Mats 98.1% 67.7% -30.5 ptsTowing Accessories 64.0% 36.5% -27.4 ptsPoker Accessories 62.1% 37.4% -24.7 ptsPressure Washers 61.6% 38.2% -23.4 ptsKids' Dress Apparel 65.9% 43.2% -22.7 ptsAuto Battery Chargers/Cables79.1% 57.1% -22.0 ptsExercise Benches 31.8% 9.9% -21.9 ptsFiling Supplies/Accessories 51.1% 29.4% -21.7 ptsBelts 53.4% 32.7% -20.7 ptsKids' Furniture 84.7% 67.4% -17.3 ptsFrozen Juice 39.7% 22.6% -17.1 pts

Source: ECRM, 52 Weeks Ending 10/22/2011Excludes Some Smaller Categories

Top Supermarkets Promoting Private Brands

AldiFresh & Easy

WegmansLoblaws

Hannaford BrothersGenuardi's Family Markets

H.E.B.Shaw's Supermarket

CarrsTom Thumb

Randall's Food MarketsWinn Dixie

BI-LODominick's Finer Foods

Food BasicsPavilions

VonsHilander

Scott's Food & PharmacyHy-Vee Food Stores

Pay Less Super Markets

65.44%61.85%

53.72%27.39%

26.27%25.76%25.33%

24.37%24.12%23.99%23.97%23.60%23.45%23.33%23.32%23.21%23.21%23.05%23.02%23.01%23.01%

Private Brand Share of Total Circular Ads

Source: ECRM, 52 Weeks Ending 10/29/2011

Aldi, Fresh & Easy, and Wegmans lead all retailers in private brand promotions.

Supermarkets Committed to Traditional Brands

SunMart Foods

Econofoods

Met Foods

D'Agostino Supermarkets

Hillers

Marc Glassman

Strack & Van Til

Ultra Foods

Magruder's

ValuMarket

0.08%

0.09%

0.32%

0.40%

0.42%

0.54%

1.03%

1.08%

2.23%

2.64%

Private Brand Share of Total Circular Ads

Many smaller grocers choose promote traditional brands over their own private brands.

Source: ECRM, 52 Weeks Ending 10/29/2011

Food Categories withHighest Private Brand Share of Promotions

Dry Beans

Frozen Fruit

Salads

Carrots

Sandwich & Hot Dog Buns

Sugar&Substitutes

Non-Dairy Creamers/Syrups

Trail Mixes

Eggs

RTE Deli Salads

Toaster Pastries

Milk

87.8%

77.1%

65.1%

55.9%

53.1%

52.6%

52.5%

52.0%

51.4%

51.4%

50.8%

50.7%

Private Brands Share of Category Ads

Source: ECRM, 52 Weeks Ending 10/22/2011Excludes Some Smaller Categories

Non-Food Grocery Categories withHighest Private Brand Share of Promotions

Coffee Filters

Picnic Tableware

Trash Bags

Food Wraps/Bags

Bleach

Napkins

Paper Towels

Facial Tissue

Toilet Tissue

Scrubbers/Sponges

Household Cleaners

Fabric Softeners

Detergents

50.0%47.3%

38.4%32.3%

28.9%25.6%

19.6%15.7%15.6%15.1%

8.7%6.8%6.4%

Private Brands Share of Category Ads

Source: ECRM, 52 Weeks Ending 10/22/2011Excludes Some Smaller Categories

Top Retailers Promoting Private Brand Grocery

Aldi

Fresh & Easy

Wegmans

Shoppers Drug Mart

Loblaws

Genuardi's Family Markets

Hannaford Brothers

H.E.B.

Carrs

Tom Thumb

Randall's Food Markets

Hilander

66.5%

63.9%

59.7%

34.4%

28.9%

28.0%

27.5%

26.7%

26.0%

25.8%

25.8%

25.5%

Private Brand % of Grocery Ads

Source: ECRM, 52 Weeks Ending 10/29/2011

Top Drug Chains Promoting Private Brands

Shoppers Drug Mart

Kerr Drug

Walgreens

Rite Aid

Kinney Drugs

Rexall

Pharma Plus

CVS

Duane Reade

Hi-School Pharmacy

Thrifty White Drug Stores

22.4%

21.2%

16.2%

15.7%

14.1%

13.0%

12.9%

12.8%

10.9%

9.9%

9.3%

Private Brand Share of Total Circular Ads

Source: ECRM, 52 Weeks Ending 10/29/2011

HBC Categories withHighest Private Brand Share of Promotions

Latex Gloves

Alcohol/Peroxide

Polish Removers

Medical Compliance

Epsom Salts

Cosmetic Applicators/Removers

Anti-Diarrheal

Reading Glass Accessories

Children's Analgesics

Motion Sickness

Vaporizers/Humidifiers

Allergy Liquids

Hand Sanitizers

100.0%100.0%

89.4%87.6%

84.1%80.3%

76.0%66.0%

62.8%57.5%

55.9%54.6%53.6%

Private Brands Share of Category Ads

Source: ECRM, 52 Weeks Ending 10/22/2011Excludes Some Smaller Categories

Top Retailers Promoting Private Brand HBC

Food City Supermarkets

Thrifty White Drug Stores

Marsh Supermarkets

Thriftway (Seattle)

Adams Super Food Stores

Super 1 Foods

Thriftway (Kansas City)

Roche Bros

Sack 'N Save

Top Food & Drug

Foodtown

BI-LO

33.3%

32.4%

31.9%

30.8%

30.5%

30.0%

29.8%

29.8%

29.0%

28.9%

28.6%

28.1%

Private Brand % of HBC Ads

Source: ECRM, 52 Weeks Ending 10/29/2011

Private Brand PromotionsAcross Mass Merchandisers

Kmart

Zellers

Target Stores

Meijer

Walmart Canada

Shopko Stores

Walmart-US

Pamida

Big Lots

21.6%

17.8%

16.6%

14.8%

13.5%

12.9%

8.2%

1.2%

0.1%

Private Brand Share of Total Circular Ads

Source: ECRM, 52 Weeks Ending 10/29/2011

General Merchandise Categories withHighest Private Brand Share of Promotions

Kitchen&Dining Room Furniture

Photo Processing Services

Dorm Furniture

Beach Furniture & Accessories

Vehicle Batteries

Cushions&Hammocks

Picnic, Serveware, Drinkware

Holiday Candles

Desk Accessories

Braking Systems

Rugs

Wall Art

99.3%

96.6%

96.1%

95.9%

95.8%

95.4%

94.9%

92.1%

88.8%

88.5%

88.1%

87.0%

Private Brands Share of Category Ads

Source: ECRM, 52 Weeks Ending 10/22/2011Excludes Some Smaller Categories

Top Retailers Promoting Private BrandGeneral Merchandise

Aldi

Food Basics

Super 1 Foods

Thriftway (Kansas City)

Ingles Markets

Lucky Supermarkets

Save Mart

Hornbachers Foods

H.E.B.

Loblaws

Kmart

60.7%

47.5%

37.5%

36.4%

35.3%

31.7%

29.7%

28.7%

28.6%

26.8%

26.7%

Private Brand % of Gen Merch Ads

Source: ECRM, 52 Weeks Ending 10/29/2011

Private Brand Share of Web PromotionsAcross Key Retailers

% Private Brands Total Web PromosSupermarkets

Kroger Stores 0.1% 945Albertson's (SV) 0.0% 678Food Lion0.0% 1838H.E.B. 0.0% 862Publix 0.0% 485Safeway 0.0% 3190ShopRite 0.0% 593

Drug ChainsRite Aid 31.6% 193Walgreens 13.0% 1258CVS 7.3% 977

Mass MerchandisersKmart 25.8% 814Target Stores 17.6% 2392Walmart-US 2.0% 1095Meijer 0.9% 216 Source: ECRM

13 Weeks Ending 10/29/11Select Retailers

Leading grocers run very few web promotions for private brands.

Top Categories for Private BrandWeb Promotions

Cosmetic Accessories

Photo

Domestics

Women's Apparel

Kids' Apparel

Diabetes Care

Shoes

Diagnostics

Cough/Cold

60.6%

51.3%

44.2%

43.7%

39.0%

29.7%

29.2%

24.7%

22.9%

Private Brand % of Web Promotions

Source: ECRM13 Weeks Ending 10/29/11Select Retailers

Methodology

• Retail ad support measured by number of ad blocks in retailer print circulars. Ad share is weighted by retailer size.

• Ad counts include branded & private label products, but not unbranded.• Ad Circular Data Includes U.S. & Canadian Retailers

ECRM’s MarketGate Ad ComparisonsWeb Site: www.AdCompare.MarketGate.comStudies on Retail Promotions: www.PromotionalReflections.com

Contacts:Scott Whalley 847-482-1793 scott@ecrm.marketgate.comTom Pirovano 440-528-0418 tpirovano@ecrm.marketgate.com