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    Nielsen: C-Store Industry to Benefit from Private Labels

    Report will be showcased during the 2008 NACS Show in Chicago.

    Schaumburg, Ill. -- The Nielsen Co., parent company to Convenience Store News, released new research that finds private label products are growing faster in convenience stores compared to other retail outlets.

    Noting a tremendous growth opportunity for the c-store industry, Nielsen will present its analysis as well as new product enhancements, at the NACS Show in Chicago, taking place Oct. 4-7.

    "Convenience stores are just starting to see the potential of private label," Tom Pirovano, director of industry insights, The Nielsen Co., said in a statement. "While private label dollar growth has been driven more so by higher unit prices, vs. 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’s research shows sales of private label products rose over the last year nearly 20 percent to $826 million in convenience stores, compared to a 15 percent increase in drug stores and less than 10 percent in supermarkets. Private label share is significantly lower in convenience stores at 1.5 percent compared to a 13 percent share of drug stores’ dollar sales and a nearly 18 percent share of supermarkets’ dollar sales.

    The report also found top-selling product categories in convenience stores—such as carbonated beverages, snacks and candy—are significantly underdeveloped in private label.

    "These products are generally considered strong sellers for convenience stores yet are very underdeveloped in terms of private label share," Pirovano said in a statement. "Now more than ever is the perfect time for convenience store operators to expand their private label offerings. Although store brands generally deliver higher margins, private label products can also convey a value image that many shoppers are looking for during times of economic uncertainty."

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