Business Reporter: Turning the tables in vendor relationships
How retailers can increase margins, improve customer loyalty and gain leverage with the help of private labels
LONDON, UNITED KINGDOM, June 20, 2025 /EINPresswire.com/ --In an article published on Business Reporter, Vistex explains how retailers are no longer constrained by traditional vendor dynamics thanks to the increasing popularity and quality of private-label products. Partnering with private labels enhances retailers’ margins by allowing them to save on marketing, advertising and distribution costs. They can also gain greater control over their supply chains from manufacturing to procurement to logistics and thereby respond faster to shifting market trends and consumer demands. As a result of increasing consumer trust in private label products and their growing shelf space, there has been a power shift too between national brands and retailers. While earlier big brands were able to impose their own terms on retailers regarding margins and the percentage of shelf space reserved for their products, with private labels now commanding more than 30 per cent of total sales across many European countries, retailers have more leverage. In this new set-up, retailers are experimenting with repositioning private labels to meet the expectations of premium shoppers as well.
By facilitating exclusive customer relationships, private labels have a positive impact on customer loyalty too. If a customer wants to purchase a private-label product regularly, they have no choice but to keep shopping with that retailer. This exclusivity creates stickiness, ensuring repeat visits and sustained purchase volume. Vendors, meanwhile, adjust to private labels’ increasing popularity with consumers by producing private-label goods for them to ensure that production lines are utilised even as branded shelf space is shrinking.
To learn more about the opportunities private labels offer for retailers, read the article.
About Business Reporter
Business Reporter is an award-winning company producing supplements published in The Guardian and City AM, as well as content published on Business Reporter online hubs on Bloomberg.com, Independent.com, Business Insider Germany and Le Figaro, delivering news and analysis on issues affecting the international business community. It also hosts conferences, debates, breakfast meetings and exclusive summits.
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About Vistex
Vistex solutions help businesses take control of their mission-critical processes. With a multitude of programs covering pricing, trade, royalties and incentives, it can be complicated to see where all the money is flowing, let alone how much difference it makes to the topline and the bottom line. With Vistex, business stakeholders can see the numbers, see what really works, and see what to do next – so they can make sure the money they’ve spent or earned is really driving growth. The world’s leading enterprises across a spectrum of industries rely on Vistex every day to propel their businesses.
https://www.vistex.com/
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