US: Private-label growth spurt in c-stores - study

By: just-food.com | 3 October 2008

Private-label products in the US are growing faster in convenience stores compared to other stores, according to new research.

The report by The Nielsen Company showed the new figures represent a "tremendous" growth opportunity for the convenience channel.

The research shows that sales of private-label products rose over the last year nearly 20% to US$826m in convenience stores, compared to a 15% increase in drug stores and just under 10% in supermarkets.

Overall, private-label share is significantly lower in convenience stores - only 1.5% compared to a 13% share of drug stores' dollar sales and a nearly 18% share of supermarkets' dollar sales.

"Convenience stores are just starting to see the potential of private label," said Tom Pirovano, director of industry insights, The Nielsen Company. "While private-label dollar growth has been driven more so by higher unit prices, versus a shift from traditional brands, we do see private-label unit sales up in recent weeks.

"The convenience channel has an opportunity to develop their own store-brands using private-label benchmarks at supermarkets and drug stores."

Nielsen will unveil its analysis at the NACS (The Association for Convenience and Petroleum Retailing) Show in Chicago from 4-7 October.

Sectors: Retail