Brand SKU's Part 2

Part
01
of two
Part
01

Brand SKUs (5)

Costco's private-label brands generated a revenue of $27.5 billion in 2018. About 45% of private-label products are found in the average basket for Sprout's customers. Target offers more than 28,000 private-label SKUs across 41 company-owned brands.

Costco

  • According to the company's recent annual report, Costco stores carry an average of 3,700 SKUs per warehouse.
  • In 2018, Costco's private-label brand Kirkland Signature generated a revenue of $39 billion vs. $35 billion in 2017, registering an annual growth of over 10%. The private-label brand accounted for nearly 27.5% of total sales for the company in 2018.
  • In 2018, the private-label products comprised just under 20% of total SKUs offered by Costco.
  • In FY-2017, the company featured a total of 3,598 SKUs with 584 (16%) private-label products. The private-label SKUs primarily comprised Kirkland Signature at 545 (93.3%) SKUs, followed by seven (1.19%) SKUs from TruNature supplements, and 32 (5.48%) SKUs from other seasonal and kitchen products.

Sprouts

  • Private-label brands accounted for about 14% of the total company revenue in the second quarter of 2019. About 45% of customer baskets contained a private-label SKU, and the category achieved double-digit growth during the period.
  • The recent annual report states that the company has about 20,100 SKU's with 2,400 (12%) private-label products. Further, the online store features about 1,800 private-label SKUs when filtered using 'Sprouts Brand' selection.
  • Sprouts launched its private-label products in 2013; it contributed about 5% of the total sales revenue. By 2017, the category recorded a revenue of over $500 million with a revenue contribution of about 12%. Additionally, the company offered about 19,000 SKUs with about 1,800 private-label products in 2018.

Target

  • In 2019, Seeking Alpha and Morning Star reported that Target Stores carry an average inventory of 75,000-80,000 SKUs.
  • Target owns 41 private-label brands with products from multiple categories like apparel, grocery, home decor, pet products, home cleaning, make-up, and others.
  • The private-label products generated nearly one-third of the total product sales ($74.43 billion) for the company in 2018.
  • When SKUs combined for all the 41 private-label brands, filtered according to each individual brand; the company's online store featured more than 28,000 SKUs, calculated to be about 35% of the company's total number of products (80,000 SKUs).
  • The top-three private-label brands with the highest number of SKUs were found to be Threshold with 5,000+ SKUs, Cat & Jack with 3,100+ SKUs, Project 62 with 2,150+ SKUs.‎ ‎
Part
02
of two
Part
02

Brand SKUs (6)

Trader Joe’s holds over 3,000 to 4,000 SKUs and carries about 3,000 unique products in each store. Over 80% of Trader Joe’s products are found to private label. Walmart holds more than 100,000 SKUs in the United States and has over 29,153 private label products. The company’s private label sales reached $32.4 billion in 2014.

Trader Joe’s

  • Grocery-chain Trader Joe’s considers itself as a specialty grocery store and has managed to outsell every other grocery store in the United States making $1,734 per square foot.
  • One of the most compelling differentiators between Trader Joe’s and other grocery stores is the average number of stock-keeping units (SKUs) it holds. According to an article published by KGlobal, Trader Joe’s holds about 3,000 to 4,000 SKUs at any given time.
  • It was found that unlike other grocery chains, Trader Joe’s private label items account for 80% of the total number of products. Therefore, the number of private label SKUs can be estimated to be approximately 2,400 to 3,200.
  • Each Trader Joe’s store occupies a space of about 8,000 to 15,000 square feet. While large grocery stores tend to stock their shelves with approximately 30,000 products, Trader Joe’s stores carry over 3,000 to 4,000 products.

Walmart

  • Walmart currently holds more than 100,000 SKUs in the United States. It terms of online retail space, a report published by BKA Content revealed that Walmart adds around 600,000 SKUs each month.
  • With new sustainable programs launched by Walmart such as How2Recycle label, over 30,000 SKUs are expected to be impacted in various degrees by 2022.
  • Walmart recorded $32.4 billion in private label sales in 2014. According to a report published by ScrapeHero, Walmart has over 29,153 private label products across 20 categories.

Research Strategy

We began our search by looking into the companies’ websites, press releases, statistical databases, industry-specific reports from websites such as Private Label Manufacturers Association, Progressive Grocer, Supermarket News, and Grocery Drive, and media reports from websites such as Forbes and CBNC. Since Trader Joe’s is privately held, we found limited information on the company’s financials. The company also keeps its logistic/supply chain details private. While the value of the company’s private label products was unavailable, we were able to find the percentage of private label products Trader Joe’s holds. Walmart, on the other hand, is a publicly-traded company. We, therefore, scoured through its annual and financial reports, presentations, and fact sheets to determine the number of own-brand SKUs, total branded product SKUs, and value of private label products. After an exhaustive search, we were able to find the general number of SKUs Walmart holds in the United States, the total number of SKUs overall (International), and the number of SKUs it adds every month due to the company’s ever-growing online marketplace.

Sources
Sources

From Part 01
From Part 02