The Wax and Wane of the Generic

On my last trip to Walmart, which is a blessedly infrequent occurrence, I couldn't help noticing that the aisles of the grocery section were being transformed - from a confetti of colors of the labels of the national brands to the stark white of generic "Great Value" goods.

And while "Great Value" is technically a store brand and not a true generic, my sense is it can be considered the equivalent. Most stores attempt to instill a sense of quality in their store brands - to suggest that they are "just as good" as the national brand - while Walmart's store brand is merely cheaper.

What struck me afterward is the remembrance of other times in recent history when generic products appeared on supermarket shelves. During the recession of the early 1980's and the savings-and-loan meltdown of the early 1990's. I didn't notice them in the way of the dot-com crash at the turn of the century - though the effects weren't as widespread. But they have now reappeared, in the wake of the housing crisis.

I don't expect this means that the appearance of generic goods could be used as an indicator that the economy is about to go south. They generally come after the fall, when people are dealing with financial difficulties and can no longer afford the quality of goods they normally prefer.

But on the other hand, they have tended to disappear as the economy has recovered, so their appearance provides little information of value, besides what is already known and felt by a great many people, but their gradual disappearance might be a genuine sign of economic recovery, more reliable than the statistics and indicators trotted out in a desperate attempt to improve the disposition of taxpayers and voters.

In the end, I'm not certain whether the matter that's on my mind is one of economics, or the old price-versus-quality debate of marketing. Perhaps it's just an observation, the meaning of which will become clearer (or dissipate entirely) with further reflection.