Which best describes how private labels may impact a retailer's image?

Private labels can significantly enhance a retailer's brand identity by allowing them to curate their own unique offerings separate from national brands. This differentiation enables retailers to establish a more distinctive niche in the market. When a retailer develops its private label products, it can tailor these goods to align with its brand values, messaging, and customer preferences. By focusing on quality and a compelling brand narrative, retailers can position their private label items in a way that resonates with consumers, thereby strengthening the overall perception of the brand.

Moreover, successful private label products often gain customer loyalty, as they can offer competitive pricing without sacrificing quality, which further elevates the retailer's status in the eyes of its consumers. For shoppers, a positive experience with private label products can reinforce their perception of the retailer as a trusted source, enhancing overall brand loyalty.

In contrast, the other options do not accurately capture the potential of private labels. They may be perceived as low-quality, which can be true for some brands, but a strong focus on quality can counter this notion. The idea that they have no impact on image overlooks the strategic role they can play for retailers. Lastly, while some consumers might feel confused by the existence of private labels, this tends to happen less frequently with strong, well-mark