US private-label grocery surge drives shift to value shopping

Rising inflation has prompted American shoppers to trade up name brands for private‑label products. From January through May, value retailers posted an 11.6% year‑on‑year sales increase, while conventional retailers grew only 2.3%, according to NielsenIQ. Retailers are responding by expanding low‑cost ranges: Walmart’s “bettergoods” label now approaches 1,000 items, and the German chain Aldi, with about 2,700 U.S. stores, plans to open 180 additional locations this year and a further 400 by 2028.

New research from the Acosta Group shows that while grocery affordability has eased since its 2023 low, prices remain historically high and many consumer habits formed during the inflationary period—heightened price awareness, promotional engagement, and a “trade‑down” mindset—persist. Analysts describe the private‑label shift as a structural commitment rather than a cyclical reaction, indicating a lasting transformation in U.S. grocery shopping behavior.