Trader´s decision making on choice between private label and branded goods

The text describes the basic decision making task of trader concerning private labels - decision on building private label assortment in certain product category and decision on private label range in circumstances of limited space at trader´s disposal. The text works up (on basis of Direct Product Profitability) tool for both decision making and evaluating private label product on trader´s shelve (mainly in comparison with its substitutes - branded products). This tool includes shadow prices specific to retail and is found useful for search for potential hidden in existing assortment structures, irrespectively it concerns private label or branded products.