The importance of private labels has steadily increased in recent years. They play an increasingly significant role in the German grocery retail sector. Especially discount retailers, which have seen enormous market share gains in recent years, are now following the principle of heavily focusing their assortments on private labels. With a sales share of over one-third in grocery retail, private labels now represent a serious competition for established manufacturer brands. Although private labels hold varying degrees of importance across different types of grocery retail businesses in Germany, they have become indispensable in the assortments. Since private labels make the assortments of individual retailers less interchangeable and less comparable, they can achieve significant differentiation from the competition.