Which of the following best defines private label merchandise?

Private label merchandise refers to products that are manufactured by one company for sale under a retailer's brand name. This practice allows retailers to create a unique identity for their products, differentiating them from national brands. The focus of private label goods is on offering quality products at a competitive price while building customer loyalty to the retailer’s brand.

When a retailer uses its store name or a store-owned brand to market these products, it often leads to better profit margins because the retailer is essentially controlling its product line without paying the high margins typically associated with national brands. This strategy can attract customers looking for value, as these products generally offer quality comparable to national brands at a lower cost.

The other definitions, while they describe various product categories, do not accurately capture the essence of private label merchandise. Branded items with well-known logos pertain to national brands, while exclusive designer products refer to high-end fashion, and sustainable goods focus on environmental considerations rather than the retailer's branding strategy.