And it's all thanks to a little something called private labelling.
Baby Bunting is Australia’s largest baby and maternity goods retailer. With around 60 stores Australia-wide, these guys are worth a huge $728 million.
They’ve seen a huge 76% lift in net profits to a whopping $17.6 million. And, total sales rose 16% to $468.4 million. And it's all thanks to their private label and exclusive products.
Baby Bunting have been trying to push sales in these products for a while, and it’s working. In fact, sales of private label and exclusive products grew by just under a third, to make up 41% of the company’s total sales.
Private labelling is when retailers sell products under their own brand name - and they generally make a LOT of cash doing it. Profit margins on outside brands can sit at around 1%. But on in-house or private products, profit margins are around 25 to 30%. That's a BIG jump.
Plus, it's great for shoppers too, because priced on private label products are generally way cheaper.
We've seen it happening in the super market space with Coles and Woolies, but now we're starting to see this evolve into other retailers, like Baby Bunting with its 4Baby brand.
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