THE growth of private ''store'' labels is driving the price wars that started when Coles slashed the price of its house-brand milk by up to 33 per cent in January.
With Coles using its private label as the spearhead of its strategy, the rest of the sector is following. Welcome to the future of retail.
The growth of store brands is a global phenomenon. Retail profit margins on them are fatter - about 2 percentage points higher - than the margin on national brands. Retailers also love the control it gives them over how products are promoted in stores.
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