Woolworths Limited (ASX:WOW) is set to double its private-label products as part of plans to boost profits and stay ahead of the market.
Fairfax media reports chief executive Grant O’Brien’s going to formally make the announcement to investors and analysts at his strategy day tomorrow.
Private label, or “house brand” products, are expected to increase to 35 per cent of the supermarket’s sales outside of fresh food, delivering larger margins than the sale of standard-brand goods.
Last month Australian Competition and Consumer Commission chairman Rod Sims said the vertical integration in the supply chain created by supermarkets selling both branded and private-label products needs close scrutiny so the supermarkets don’t misuse their market power.
Woolworths Limited (ASX:WOW) reported a net profit of $2.1 billion for the 2011 financial year.
