The retailer is dropping its long-standing Homebrand private label brand and will rebrand products under the name Essentials.
Homebrand was launched by Woolworths in 1983 and the range has grown to more than 850 SKUs. However, despite work to improve the quality of products in recent years and also significant packaging redesign aimed at making the products more colourful and engaging, the retailer has called time on the brand.
Instead, beginning with general merchandise categories, the range will be merged into the Essentials brand, which was launched in 2010.
“The Essentials range, as the name suggests, are products every home needs, both food and non-food,” a spokesperson for Woolworths said. “When customers see each product move to the new Essentials packaging they can be assured the product will offer market-leading value for money for our customers.”
The spokesperson said Woolworths had been reviewing the products in all of its own-brand ranges to ensure quality and value for Woolworths customers.
Woolworths’ move to launch a new entry-tier private label is “clearly a strategic response to two challenges that the retailer faces,” IGD Retail Analysis said.
“Firstly, the need to build a stronger price proposition in the face of rising competition from the likes of Coles, ALDI and Metcash, who has also recently relaunched its Black & Gold value private label brand. Secondly, the growing quality perception among shoppers of ALDI and Coles’ private label products.
“However, a report last year stated that most Australian shoppers perceive Woolworths and Coles’ standard-tier private-label ranges to be on a par with ALDI’s brands, so it will be interesting to see whether a new entry-tier private label will significantly help improve perception and ultimately performance.”