NEW YORK — During his keynote address to the Private Label Manufacturers Association’s (PLMA) Private Label Week event held virtually earlier this month, former Walmart U.S. chief executive officer Bill Simon said retailers and manufacturers of private label brands will be central in pulling the economy out of the quagmire it was sucked into by the COVID-19 pandemic.

Because the U.S. economy is driven by consumers, when the retail and packaged goods industry does well “everyone does well,” Simon noted. He added that the industry is going to have to lead the way through the transition to a full recovery from the shutdown and economic downturn brought on by the pandemic.

“The path to economic recovery actually goes through us. It’s a huge responsibility that we bear, and it’s something that I don’t know if you’ve ever really thought about, but your success will mean the success of our country and the success of the citizens in our country,” Simon said.

“The economy is not going to recover unless business recovers and the consumer recovers, and you’re part of the consumer. So therefore, you have to recover, and you have to do well in order for the consumer to do well. It’s a big responsibility. It really is. How you go is going to be how the consumer does, and how the consumer goes is going to be how our national economy goes.”

To further his point, Simon cited historical references when business led, such as the Industrial Revolution, the Roaring Twenties and the huge post World War II economic expansion, all of which were fueled by American business and its leaders.

“So you’re going to play a critical role in this, the next phase of our economy, as we start to reemerge from this crazy slumber that we’ve been in,” he added. “It’s important to remember, so I’m going to try to summarize some of this for you, because you guys are going to play an important role. The economy is a mess. It’s a train wreck. It is getting better, and hopefully we continue to get better.”

Simon also touched on e-commerce, which has obviously risen during the pandemic. While he said he expects e-commerce shopping to last, he still believes it represents around 20% of overall retail.

In terms of private label, private brands, Simon noted, have been trending more than branded items, which means the industry is poised to succeed in this area.

“The industry is moving in a direction that’s reflecting consumer trends in a way that’s very important right now,” he said. “Brands are much less important than they were 20 or 30 years ago. Consumers want great products at great prices. They never once wanted brands to use as badges, but really now want to be unique. And I think your products give them that opportunity to be unique.”

Simon also challenged today’s industry leaders to be bold and take risks as part of the overall strategy of business leading the way to economic recovery.

“And so if you’ve been thinking about adding capacity, do it. If you’ve got the opportunity to hire more people and build your business, do it. There’s no need to wait,” he said. “If you’ve got a great business model, in a great segment right now, if you’ve got a good idea, move forward.”

Time, Simon cautioned, is not on the side of business. It’s an enemy, not a friend. So action is what is needed now.

“I have never seen a perfect time for an investment. It was always a reason not to do it and there’s always a fear and a risk that goes with it. Don’t fall prey to that risk, move forward,” he said.