How Retailers Promote Their Own Brands Review of Private Brands Promotions November, 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 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 Promotions By Product Segment Source: ECRM 52 Weeks Ending 10/22/2011 Excludes Unbranded Promos Food segments represent 43.8% of all private brand promotions

Categories with the Most Private Brand Promos 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 Source: ECRM, 52 Weeks Ending 10/22/2011 Excludes Some Smaller Categories Excludes Ads for Unbranded Products

Categories Increasing Private Brand Promotions Year AgoCurrentShare Pt CategoryPB SharePB ShareChange Anti-Diarrheal34.2%76.0%+41.9 pts Kids' Boots55.9%84.9%+29.0 pts Flower Pots & Planters54.2%82.8%+28.6 pts Allergy Liquids26.2%54.6%+28.4 pts Inline Roller Skates & Access23.7%51.3%+27.6 pts Shelving & Hooks1.2%27.4%+26.1 pts Hand Vacs0.0%25.6%+25.6 pts Eye Medication/Ointment3.7%27.7%+24.0 pts Free Weights16.5%37.3%+20.8 pts Doll Accessories/Clothes7.3%26.7%+19.5 pts Trail Mixes32.5%52.0%+19.4 pts Photo Processing Services78.4%96.6%+18.2 pts Lighting61.2%79.3%+18.1 pts Children's Analgesics44.9%62.8%+17.9 pts Flashlights16.1%33.8%+17.7 pts Source: ECRM, 52 Weeks Ending 10/22/2011 Excludes Some Smaller Categories

Categories Running Fewer Private Brand Promotions Year AgoCurrentShare Pt CategoryPB SharePB ShareChange Floor Mats98.1%67.7%-30.5 pts Towing Accessories64.0%36.5%-27.4 pts Poker Accessories62.1%37.4%-24.7 pts Pressure Washers61.6%38.2%-23.4 pts Kids' Dress Apparel65.9%43.2%-22.7 pts Auto Battery Chargers/Cables79.1%57.1%-22.0 pts Exercise Benches31.8%9.9%-21.9 pts Filing Supplies/Accessories51.1%29.4%-21.7 pts Belts53.4%32.7%-20.7 pts Kids' Furniture84.7%67.4%-17.3 pts Frozen Juice39.7%22.6%-17.1 pts Source: ECRM, 52 Weeks Ending 10/22/2011 Excludes Some Smaller Categories

Top Supermarkets Promoting Private Brands 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 Many smaller grocers choose promote traditional brands over their own private brands. Source: ECRM, 52 Weeks Ending 10/29/2011

Food Categories with Highest Private Brand Share of Promotions Source: ECRM, 52 Weeks Ending 10/22/2011 Excludes Some Smaller Categories

Non-Food Grocery Categories with Highest Private Brand Share of Promotions Source: ECRM, 52 Weeks Ending 10/22/2011 Excludes Some Smaller Categories

Top Retailers Promoting Private Brand Grocery Source: ECRM, 52 Weeks Ending 10/29/2011

Top Drug Chains Promoting Private Brands Source: ECRM, 52 Weeks Ending 10/29/2011

HBC Categories with Highest Private Brand Share of Promotions Source: ECRM, 52 Weeks Ending 10/22/2011 Excludes Some Smaller Categories

Top Retailers Promoting Private Brand HBC Source: ECRM, 52 Weeks Ending 10/29/2011

Private Brand Promotions Across Mass Merchandisers Source: ECRM, 52 Weeks Ending 10/29/2011

General Merchandise Categories with Highest Private Brand Share of Promotions Source: ECRM, 52 Weeks Ending 10/22/2011 Excludes Some Smaller Categories

Top Retailers Promoting Private Brand General Merchandise Source: ECRM, 52 Weeks Ending 10/29/2011

Private Brand Share of Web Promotions Across Key Retailers % Private BrandsTotal Web Promos Supermarkets Kroger Stores0.1%945 Albertson's (SV)0.0%678 Food Lion0.0%1838 H.E.B.0.0%862 Publix 0.0%485 Safeway 0.0%3190 ShopRite0.0%593 Drug Chains Rite Aid31.6%193 Walgreens13.0%1258 CVS7.3%977 Mass Merchandisers Kmart25.8%814 Target Stores17.6%2392 Walmart-US2.0%1095 Meijer0.9%216 Source: ECRM 13 Weeks Ending 10/29/11 Select Retailers Leading grocers run very few web promotions for private brands.

Top Categories for Private Brand Web Promotions Source: ECRM 13 Weeks Ending 10/29/11 Select 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 ECRMs MarketGate Ad Comparisons Web Site: Studies on Retail Promotions: Contacts: Scott Whalley Tom Pirovano