As the c-store industry in the US struggles to overcome a recent downturn in store sales and trips, private label is emerging as a valuable tool that can boost loyalty and address affordability concerns.
In just the past three months, national and regional players have rolled out numerous products and launched new private label lines. Love’s Travel Stops & Country Stores unveiled premium baked goods in August, while Sheetz debuted a line of ready-to-drink energy coffees called Buzz Beanz that same month.
7-Eleven, which has long been ahead of the industry curve on private label adoption, earlier this month introduced a Hispanic store brand, Selección 7, that includes packaged baked goods, salty snacks and candy.
Store brands have never been core to the c-store experience, with its focus on impulse purchases of popular candy, snacks, drinks and other items. Just 3.2% of products sold in the industry are private label, not including foodservice, according to NielsenIQ data. That’s far below the nearly 25% share across all of U.S. retail.
But store brand penetration at c-stores is poised to grow as major chains ramp up their development of proprietary items. Jason Zelinski, vice president for North American retail with NielsenIQ, said he’s seeing more chains create teams dedicated to store brand development or establish positions dedicated to store brand sales within category teams — strategies that many grocery chains employ.
Zelinski said c-store chains’ recent private label launches are addressing two main issues: cultural relevance and functionality. This includes developing products that connect with groups like Hispanic and Gen Z shoppers that are open to store brand purchasing. Sixty-seven percent of Gen Z consumers say private label products are as good as national brands, according to NielsenIQ data.
Functional products, meanwhile, have included energy beverages like Sheetz’s Buzz Beanz launch and items that tout high protein content, like 7-Eleven’s 7-Select Rebuild line of meal replacement shakes.
“If you can develop products that are unique to you, that’s how you drive repeat trips,” Zelinski said.
Full story C-stores focus on private label to soften sales declines | C-Store Dive
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