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Private Label Shielding: Myth, Manipulation, or Misconception?

Lesniak, Frida LU and Berzell, Greta LU (2025) BUSN39 20251
Department of Business Administration
Abstract
The introduction of private label brands (PLBs) have transformed the landscape of grocery retail, challenging the dominance of manufacturer brands (MBs) and redrawing the lines of in-store competition. As shelf space plays a critical role in shaping consumer behavior at the point of purchase, this study investigates whether Swedish grocery retailers allocate shelf space to PLBs in ways that exceed their market share, a practice referred to as shielding.

Through an extensive observational study spanning 21 grocery stores across three leading Swedish retail chains, we analyzed over 45,000 products across 18 staple product groups. Two key measures of shelf allocation are examined to identify the occurrence of shielding; exposure (number... (More)
The introduction of private label brands (PLBs) have transformed the landscape of grocery retail, challenging the dominance of manufacturer brands (MBs) and redrawing the lines of in-store competition. As shelf space plays a critical role in shaping consumer behavior at the point of purchase, this study investigates whether Swedish grocery retailers allocate shelf space to PLBs in ways that exceed their market share, a practice referred to as shielding.

Through an extensive observational study spanning 21 grocery stores across three leading Swedish retail chains, we analyzed over 45,000 products across 18 staple product groups. Two key measures of shelf allocation are examined to identify the occurrence of shielding; exposure (number of shelf facings) and favored positioning (placement on prime shelves). This study presents clear evidence that PLB shielding is a prevalent practice within the Swedish grocery retail industry. The findings also indicate that this pattern of shelf space allocation is an intentional strategic course of action. By contrast, no evidence of intentional favoring of PLBs in prime shelf positions was found. These findings suggest that retailers
may rely more on visual dominance through exposure than on prime shelf positioning to influence shopper decision-making.

Given that Swedish households spend a notable share of their disposable income on
groceries, shelf space allocation holds significance not only for the industry, but also for broader societal outcomes. By providing large-scale in-store observational evidence, this study contributes to a deeper understanding of how control over the retail environment may be strategically used to strengthen the position of PLBs, highlighting potential implications for manufacturers, consumers, and the competitive balance in the grocery sector. (Less)
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author
Lesniak, Frida LU and Berzell, Greta LU
supervisor
organization
course
BUSN39 20251
year
type
H1 - Master's Degree (One Year)
subject
keywords
Shielding, Private Label Brand, Manufacturer Brand, Shelf Allocation, Exposure, Positioning, Grocery Retail, Retailer-Manufacturer Competition
language
English
id
9201596
date added to LUP
2025-06-30 12:11:38
date last changed
2025-06-30 12:11:38
@misc{9201596,
  abstract     = {{The introduction of private label brands (PLBs) have transformed the landscape of grocery retail, challenging the dominance of manufacturer brands (MBs) and redrawing the lines of in-store competition. As shelf space plays a critical role in shaping consumer behavior at the point of purchase, this study investigates whether Swedish grocery retailers allocate shelf space to PLBs in ways that exceed their market share, a practice referred to as shielding. 

Through an extensive observational study spanning 21 grocery stores across three leading Swedish retail chains, we analyzed over 45,000 products across 18 staple product groups. Two key measures of shelf allocation are examined to identify the occurrence of shielding; exposure (number of shelf facings) and favored positioning (placement on prime shelves). This study presents clear evidence that PLB shielding is a prevalent practice within the Swedish grocery retail industry. The findings also indicate that this pattern of shelf space allocation is an intentional strategic course of action. By contrast, no evidence of intentional favoring of PLBs in prime shelf positions was found. These findings suggest that retailers 
may rely more on visual dominance through exposure than on prime shelf positioning to influence shopper decision-making. 

Given that Swedish households spend a notable share of their disposable income on 
groceries, shelf space allocation holds significance not only for the industry, but also for broader societal outcomes. By providing large-scale in-store observational evidence, this study contributes to a deeper understanding of how control over the retail environment may be strategically used to strengthen the position of PLBs, highlighting potential implications for manufacturers, consumers, and the competitive balance in the grocery sector.}},
  author       = {{Lesniak, Frida and Berzell, Greta}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Private Label Shielding: Myth, Manipulation, or Misconception?}},
  year         = {{2025}},
}