Private labels and consumer decision-making in Spain

Abstract

Purpose Private labels (PLs) are experiencing rapid growth across Europe and the U.S., with Spain emerging as one of the leading markets, where retailers such as Mercadona have positioned PLs as category benchmarks. This study offers a comprehensive analysis of the factors influencing PL consumer behaviour in Spain, where PLs account for more than 45% of the market share.

Design/methodology/approach We identified eight key dimensions of consumer perception and applied a multiple linear regression model to examine their relationship with customer loyalty and product category engagement.

Findings The findings reveal a strong positive relationship between loyalty to PLs, the number of product categories purchased and the perceived importance of product quality. The results also highlight the effectiveness of retailers’ strategies in building PLs that compete on both variety and perceived value.

Practical implications Beyond theoretical contributions, this study provides actionable insights for business and policy. For retailers, the findings emphasize the need to invest in consistent product quality, segmentation strategies and loyalty-building initiatives. For policymakers, the growth of PLs presents an opportunity to enhance consumer access to affordable, high-quality goods, foster market competitiveness and support household resilience amid economic uncertainty.

Originality/value This study offers a comprehensive analysis of the factors influencing PL consumer behaviour in Spain, where PLs account for more than 45% of the market share.