Brand SKU's

Part
01
of four
Part
01

Brand SKUs (1)

Publix stocks nearly 40,000 SKUs with private label sales amounting to $5.2 billion. H-E-B stocks 40,000 to 50,000 SKUs with private label sales reaching $2.8 billion. These and other findings are outlined below.

Publix

Additional Information

H-E-B

Additional Information

Research Strategy

Due to the companies being privately held, we found no annual report from which to gather the most recent data for our research. Our first strategy was to research both Publix and H-E-B's corporate websites but these did not have any publicly available information regarding their SKUs or private label sales. Next we leveraged web scraper tools like ScrapeHero.com but only found limited data for these two companies with no information on SKUs or private label sales. Lastly, we conducted a press search and were able to gather pieces of information for our research. From BNP Media, we determined the amount of private label sales from 2009. We also found a 2011 interview mentioning H-E-B's number of SKUs. We also located a brochure from H-E-B stating its number of own branded SKUs from 2010 (we found no other updated version of the brochure from the company site).

In summary, due to lack of publicly available information from private companies Publix and H-E-B, we used the most recently available and relevant information to address the query. We also included additional information containing the latest sales and company size for Publix and H-E-B. These have been outlined above.
Part
02
of four
Part
02

Brand SKUs (2)

Whole Food Market's conventional stores have over 20,000 SKUs, of which 1,000+ are private label. It is estimated that Hy-vee generated $2.14 billion in private label sales.

Whole Foods Market

  • Total number of SKUs at conventional Whole Foods Supermarkets: 20,000+
  • Currently, there are 12 Whole Foods 365 store (small-format) stores in the US. Whole Foods 365 stores house 7,000 SKUs.
  • According to the 40th Annual Natural Retailer Survey, 47% natural retailers stocked between 25 to 200 private label SKUs, and only one retailer stocked 1,000 private-label SKUs. As Whole Foods Market (a survey respondent) is the largest organic products retailer in the United States, and since Amazon (parent of Whole Foods) sells 1,000+ Whole Foods Market private-label SKUs, it is assumed that Amazon sells all Whole Foods Market private label SKUs.
  • Therefore, the number of private-label SKUs: 1,000+
  • Number of branded SKUs: ~19,000 (20,000+ - 1,000+)
  • Total revenue: $15,887,900,000
  • The exact value or share of Whole Foods Market's private label sales is not known. According to a report by eMarketer, "at premier fresh grocery stores like Whole Foods Market or Sprouts Farmers Market, just 23% of CPG sales came from private-label items"
  • Therefore, private label's share in Whole Foods Market's revenue is assumed to be ~ 23%
  • Revenue from private label SKU sales: ~ 3.65 billion (23%*$15,887,900,000)

Hy-vee

  • Hy-vee's 90,000 sq.ft. store in Central Iowa sold 70,000 SKUs in 2013.
  • Hy-vee's 90,000 sq.ft. store in Waukee, Iowa sold 60,000 SKUs in 2013.
  • Given that the typical Hy-Vee store is 90,000 sq. ft., the average number of SKUs at a large-format Hy-vee store is estimated to be 65,000 (60,000+70,000/2). While the sample used to calculate the average is small, it is unlikely that the number of SKUs will vary drastically between stores of the same size.
  • Total number of SKUs: ~ 65,000 SKUs
  • Hy-vee has announced that it plans to eliminate "200 artificial ingredients or synthetic chemicals across 1,000 Hy-vee label products by July 2018". This does not indicate the total number of private label products, which will also include organic private label products.
  • Number of private label SKUs: N/A
  • Number of branded SKUs: N/A
  • Total revenue : $10.2 billion
  • Private label share in revenue: ~ 21%
  • Revenue from private label SKU sales: ~ 2.14 billion (21%*$10.2 billion)
  • Ninety-seven percent of Hy-vee's business comes from 13,000 SKUs.
  • Hy-vee spent 32% of its promotional budget on private labels in 2016.

Research Strategy

A search through the company websites; annual reports (from when Whole Foods was not owned by Amazon); industry portals such as the Progressive Grocer, Private Label Manufacturer's Association, Supermarket News, Grocery Drive, and Whole Foods Magazine; statistical databases resulted in limited success. Separately, we also searched for management interviews and rankings of grocers but were unable to find some of the required data. The Progressive Grocer provides rankings based on revenue and also lists the number of stores managed by each brand; however, it does not provide SKU data.
Part
03
of four
Part
03

Brand SKUs (3)

Southeastern Grocers has around 3,000 SKUs in its private label brand. Giant Eagle has approximately 10,000. Neither company publicly discloses the value of its private label brand. There is insufficient information available to calculate the value of Southeastern Grocers' label. A calculation of the value of the Giant Eagle private label brands has been made based on their target sales.

Southeastern Grocers

  • Southeastern Grocers has approximately 3,000 of its own brand SKUs, which cover all categories. In 2017, they tested more than 2,300 of their brand items, which led to improvements in 2,260 of the products.
  • The private label brand items owned by Southern Grocers include SE Grocers Essentials, SE Grocers, and Prestige. The Southern Grocers brand has around 3,000 products, the Southern Grocers Essentials has about 100 products, and the Prestige brand between 20 and 30.
  • Southeastern Grocers does not disclose publicly the total number of branded SKUs that it stocks. The average grocery store stocks 50-60,000 SKUs.
  • The grocery chain had a 2018 revenue of $10.5 billion, down 10.5% from the previous year.
  • Southeastern Grocers filed for bankruptcy in 2019, with a debt level of more than $500 million.

Giant Eagle

  • Giant Eagle sells more than 10,000 products under its private label. The products are sold across all categories in its stores.
  • In 2019, Giant Eagle had revenue of $9.2 billion.
  • The company was aiming to make 40% of its sales private label brands, which would give the private label a value of $3.68 billion, based on its current revenue. Unfortunately, Giant Eagle has not disclosed whether it has achieved this target.
  • Giant Eagle does not disclose publicly the total number of branded SKUs that it stocks. The average grocery store stocks 50-60,000 SKUs.

Research Strategy

We first reviewed the respective websites of the two companies as often they contain information regarding products, revenues, and sales. A review of the company websites was productive in locating the number of private labels for Giant Eagle. The Southeastern Grocers' website did not have any information of this nature and is relatively basic in its offerings.

We next attempted to review the annual reports of both companies as they often contain information of this nature. Unfortunately, the most recent report for Southeastern Grocers was 2013. The information contained in it was dated and mostly irrelevant given Southeastern Grocers relaunched its private label brands in 2017. Giant Eagle is a privately owned company, and its annual reports are not available publicly.

Our next strategy saw us leverage web scraper tools such as Scrapehero and a range of business intelligence resources like FD Reports. We were able to locate the annual revenue of each company using these sources. The majority of the information that was of use was hidden behind paywalls and unable to be accessed.

A review of media articles relating to the two companies yielded some results. We were able to locate information regarding the relaunch of Southeastern Grocers that discussed the number of private label SKUs they have. We were also able to identify information regarding the target that Giant Eagle has in respect of its private label. Unfortunately, the article did not disclose whether Giant Eagle was reaching this target. We have calculated the value of the Giant Eagle private label as a percentage of the total revenue for the company; on the basis, the target is achieved. Neither company appears to disclose the total number of SKUs that they stock. We were able to locate a media article that estimated this based on the size of the stores.

Part
04
of four
Part
04

Brand SKUs (4)

Wegmans stocks 65,000 SKUs with private label products representing 25% to 40% of its sales. WinCo stocks 23,000 SKUs including thousands of its own WinCo Foods Private Brand products. These and other findings are outlined below.

Wegmans

WinCo

Additional Information

Research Strategy

Due to WinCo being a privately held company, we found no annual report from which to gather the most recent data regarding the definite number of its own brand SKUs. Our first strategy was to research its corporate website but it did not have any publicly available information regarding its own brand SKUs or private label sales. Next we leveraged web scraper tools like ScrapeHero.com as well as business intelligence resources such as FD Reports but these have limited and locked data. Lastly, we conducted a press search and were able to glean relevant information for our research. From BNP Media, we determined the amount of WinCo's private label sales from 2010. We also found a 2013 interview disclosing WinCo's number of SKUs. We also located a creative agency's statement that it had designed "thousands" of WinCo Foods' private label products. Lastly, we included a press release stating that company is developing hundreds of private label products.

In summary, due to lack of publicly available information from WinCo, we utilized the most recent and relevant information available to determine the number of its own brand SKUs. We have outlined these above.
Sources
Sources

From Part 01
Quotes
  • "9. Publix Super Markets Inc PL Grocery Sales: $5.2 billion"
  • "No. Of Stores: 1,020 No. Of Employees: 142,000"
  • "16. H.E. Butt Grocery Co PL Grocery Sales: $2.8 billion"
  • "No. Of Stores: 300+ No. Of Employees: 70,000+"
  • "A typical Joe V’s Smart Shop will cover about 50,000 sq. ft. And carry about 9,000 SKUs, far fewer than the 35,000 to 40,000 SKUs found in Traditional full-size grocery formats"
Quotes
  • "The Publix Brand comprises most of the retailer’s private brand sales and includes more than 3,000 SKUs."
  • "The Publix Premium line capitalizes on distinct offerings and new flavor trends, such as Tomato Garlic Marinated Mussels. "
  • "Cox says the line, which contains more than 350 SKUs, was designed and is maintained to “express the specialty and quality nature of these products.”"
Quotes
  • "The majority of the Company’s stores operate under its namesake banner. Stores typically stock close to 40,000 SKUs and sell roughly 3,000 private label products."
Quotes
  • "(p.5) Number of unique Own Brand items - 11,800+"
Quotes
  • "H-E-B wants its name to represent the best store for each neighborhood, designed to reflect that neighborhood's particular story, explains Craig Boyan, president and COO. “We work very hard and it's very complicated; obviously, with 40,000 to 50,000 SKUs, store design can change based on assortment store by store, be it in Houston, San Antonio or west Texas,” he says."
Quotes
  • "Headquarters - Lakeland, Florida"
  • "Type - Privately Held"
Quotes
  • "Headquarters - San Antonio, TX"
  • "Type - Privately Held"
Quotes
  • "EMPLOYEES 202,000 FISCAL YEAR END Dec 31, 2018 SALES $36.1B"
Quotes
  • "EMPLOYEES 116,000 FISCAL YEAR END Oct 31, 2018 SALES $28B"
From Part 02
Quotes
  • "In addition, the 365 stores are smaller (about 25,000 to 30,000 square feet) than conventional Whole Foods supermarkets, which average around 38,000 square feet and can range up to 50,000 square feet. The smaller format also carries about 7,000 SKUs, less than half of the 20,000-plus SKUs at full-size Whole Foods stores, and doesn’t include full-service departments such as deli or bakery."
Quotes
  • "Whole Foods stores now sell Amazon Echo devices, and Amazon has added more than 1,000 Whole Foods private-label products on its website."
Quotes
  • "Nearly half of all respondents (47%) carry a private label supplement line, with anywhere from fewer than 25 stock-keeping-units (SKUs), to more than 200 SKUs. Several respondents said they carried 300 private label SKUs, two offered 500 SKUs, and one store had 1,000 private label SKUs. "
Quotes
  • "At premier fresh grocery stores like Whole Foods Market or Sprouts Farmers Market, just 23% of CPG sales came from private-label items, similar to mass merchandise/superstores like Walmart and Target, where private label amounted to 22% of CPG sales."
Quotes
  • "Hy-Vee Inc. has announced plans to eliminate more than 200 artificial ingredients or synthetic chemicals across 1,000 Hy-Vee label products by July of 2018."
From Part 04
Quotes
  • "Private brands certainly play a huge role in Wegmans business strategy. According to London-based Planet Retail, private brand sales make up about 25 percent of the retailers overall grocery dollar sales."
  • "No. of Store Brand SKUs: 7,000"
Quotes
  • "Wegmans ranked ninth. And it had higher sales ($114.9 million) than Publix ($107.3 million) generated at its eight area locations."
Quotes
  • "At Wegmans, about 15 percent of the 65,000 distinct products or SKUs are Wegmans’ brands, a spokeswoman said. She would not say what percent of sales are from its store brands."
  • "But Food World’s Metzger estimates Wegmans generates at least 40 percent of its sales from selling its private label products."
Quotes
  • "49,000 employees Annual sales in 2018 of $9.2 billion"
Quotes
  • "WinCo Foods PL Grocery Sales: $500 million"
Quotes
  • "We only do one thing, and that’s be a grocery store, not a mass merchandiser, so with about 23,000 SKUs we have a broader offering of groceries, including a more significant bulk foods offering, and we do a good job of keeping stores in-stock."
Quotes
  • "MBD began its relationship with the retailer when it successfully rolled out thousands of redesigned the WinCo Foods Private Brand SKU’s so it’s no accident that Private brand makes a cameo in the spot."
Quotes
  • " The stores each include WinCo's newer décor package that creates a no nonsense, efficient, clean feel and which highlights the product and coordinates nicely with the hundreds of quality private label products the company continues to introduce. "
  • "The unique bulk foods department allows customers to buy only the amounts they want and displays over 700 items, including many natural food products, some organics, snacks, candies, cereals, flours, pastas, spices and more. "
Quotes
  • "Type - Privately Held Founded - 1967"
Quotes
  • "Its stores are packed with $1.5 million worth of inventory on any given day, and it sells that much merchandise in a week. That’s an enviable volume."
  • " The average supermarket sells about $318,000 worth of merchandise per week, according to the Food Marketing Institute."