40 January | February 2026 abasto.com BY JULIO IBEZ [email protected] Private Brands as a Strategy for Stability and Loyalty W e are living through one of the most challenging socioecono- mic periods in recent years. Inflation continues to bite, supply chains are still adjusting, operating costs re- main high, and consumers have be- come more selective, multichannel, and extremely price-sensitive. In this scenario, independent retai- lers face two choices: resist or evolve. Evolution inevitably involves stren- gthening private brand strategies as a way to regain margin, deliver real value, and reinforce our identity as Hispanic supermarkets. This is not a new topic in this series, but it is urgent. Today, private brands are no longer a supplementthey have become the heart of a smart as- sortment. A Consumer Who Compares More and Demands Value Shoppers want to save without sa- crificing quality. They know private brands strike that balance and act ac- cordingly. Major chains proved this years ago: Aldi and Lidl built their models almost entirely around pri- vate labels. Walmart, Kroger, Ahold, and Target rapidly expanded their portfolios to meet a more value-dri- ven, rational consumer. Meanwhile, independent retailers are just starting this journey, some- times constrained by scale or bar- gaining power. Even so, the time to move forward is now. Why They Are Essential for Independent Retailers 1 Deliver real savings to custo- mers. In a context where households are budgeting carefully, private brands offer controlled quality at reasonable prices, encouraging repeat visits and strengthening loyalty. 2 Differentiate the independent supermarket. In fresh produce, we already com- pete on quality and service. But in grocery, where competition is fierce, differentiation is harder. A strong private brand provides identity, con- sistency, trust, and exclusivity. 3 Improve inventory and supply control. Private brands allow for more pre- dictable planning, stable agreements with suppliers, and direct control over quality and volumes. Two Clear Paths for Independents 1 Partnerships with established private brands. This route is ideal for rapid progress. It offers high-turnover SKUs, mo- dern packaging, ready certifications, and bargaining power through com- bined volume. It allows immediate competition without development costs. 2 Develop your own private brand. This path takes longer but delivers greater strategic impact. It requires building identity, selecting manufac- turers, designing branding, con- trolling quality and margins, and, Retail Academy if feasible, scaling regionally or nationally. For growth-focused chains, it is the most powerful option. The Challenge: Decide and Act Quickly Hispanic consumers compare, seek price, but also value authen- ticity and connection. Now is the time for stores to: Eliminate SKUs that add no value. Consolidate categories with strategic private brands. Strengthen communication about quality and savings. Leverage strength in fresh pro- duce to build trust in grocery as well. Private brands are more than a productthey are a promise, a lo- yalty tool, and a strategy to navigate uncertain times with stability. As Hispanic retailers, we must offer quality while protecting our communities wallets. Private brands allow us to achieve both. The 20252026 period will distinguish independents who embraced this strategy, winning share, retention, and relevance in their neighborhoods. The time to act is now. ADVICE

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