Emerging retail trends could affect egg industry

Two significant marketing trends are emerging which may have some impact on the U.S. egg industry.
The first relates to the accelerating pace of adopting house brands. Wal-Mart is a leader in this initiative, recently announcing that national brands Hefty and Glad would be replaced by private label products in both Wal-Mart and Sam’s Club stores. In a subsequent announcement, Wal-Mart indicated that McCormick spices would be dropped in favor of a private label. This is significant, since McCormick is thought to market 11% of its production through the Wal-Mart chain.
The second trend is toward smaller stores, especially in urban areas. Meijer’s, Target and Wal-Mart have all announced smaller stores either as a test or as a commitment. Smaller stores would have reduced cold storage, which could require more frequent deliveries, either from a distribution center or, in the case of some suppliers, increased direct-to-store delivery.