Abstract
Given the surge of discounting in France, various chains are keen to develop their own brand stores (retailers). What is a cause of concern for hypermarkets is that private labels are becoming increasingly important, especially with the declining purchasing power of households. In some cases private labels of equivalent quality have even been produced by the same companies as national brands. The national brands are less prominently displayed in stores. The year 2006 saw an overhaul of both national and store brands due to the congestion of shelves for many chains. Thus, Intermarché and Système U supplanted their competitor's goods in the markets. Brand name products hold a considerable share of the market in France, though they have not yet reached the significance that they have in Great Britain, where they were pioneered back in 1869 in Sainsbury's stores. In the first part of this document we will study the role of private labels in merchandising strategy, and in the second part, the competitive benefits of private labels.
