Private labels to generate 35% of Plus sales

Discounter store network Plus held by German group Tengelmann is currently seeing 25% of its sales generated by private labels. “Our goal is to increase this share to 30-35% of the turnover,” said Uwe Klostermann, general manager of the Plus Romania network. The company relies on imported products, mainly premium cosmetics and sweets, in order to secure a good position on the market. “The best-selling private labels are basic food products, non-food categories (such as cosmetics), sweets and soft drinks. The products are comparable with those of established premium brands, but their prices can be as much as 30% lower,” specified Plus representatives. “Among the best-selling private labels are Alpa (dairy), Goutier (chocolate), Famili (cereals) and Blue Moon (body care products). The low price policy for private labels is sustained by the minimal expenditures with product wrapping and labelling, the lack of a promotional budget, as well as by the high volumes of sales.