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TOKYO -- 7-Eleven parent, Seven & i Holdings Co., will develop and market its own private label brand for its 7-Eleven stores worldwide in an attempt to cash in on shoppers seeking low-priced goods amid the global economic slump, Dow Jones reported.
The Japan-based retail giant, which operates the 7-Eleven chain in both the U.S. and Japan, said Tuesday it will team up with the Dallas-based U.S. unit of 7-Eleven Inc. to introduce roughly 100 private label food and other products by fiscal 2010. As a first step, the company will release a wine in Japan and the U.S. as early as this autumn.
The new brand will offer products cheaper than items carrying the logo of other major brands, according to Seven & i Holdings. The company said it’s aiming to expand these lower-priced lineups by taking advantage of economies of scale through a joint placement of a large orders for grain and other raw materials in a lump sum.
The company expects to sell these private label products at 7-Eleven stores worldwide. The c-store chain has 36,000 outlets in 15 countries, including 12,000 in Japan.
As CSNews Online previously reported, 7-Eleven stores in the U.S. introduced 26 snack items in November bearing a new 7-Select brand name. The extensive line-up of products sold under the 7-Select brand crosses all store categories including juice, jerky, animal crackers, Gummi worms, paper goods, personal care items, sports drinks, sandwich bags, office supplies, batteries cooking oil, motor oil and more.
In Japan, Seven & i sells its own brand called "Seven Premium," which offers products 20 to 30 percent cheaper than other major brands. Sales of these products are expected to increase by 60 percent this fiscal year. The number of products offered under the brand totaled about 600 as February, but that number is expected to more than double to 1,300 by the end of this fiscal year, according to the Dow Jones report.
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