The Private Label Opportunity for Convenience Stores

Jeff Rogut
CEO AACS
Consumer perceptions related to private-label products are “overwhelmingly favorable” across the world. This is according to a recently published global survey performed by New York-based Nielsen. As attendees on our recent overseas study tour to Japan and Korea saw, private brands abound in convenience stores across many categories. Private label dollar share of sales ahs grown from approx. 14% in 2010 to 21.3% in 2014 MAT.
A quote from the report:
“Shoppers are increasingly aware of price, which is no longer a differentiator, but an expectation,” said Caroline Burgess, associate director, client service, Nielsen. “Retailers have traditionally focused on ‘me-too’ offerings rather than creating a point of difference with their private-label products. This is changing as more retailers have taken on the role of brand creator, providing reassurance, personality and something unique in the products they offer. The premium tier is particularly valuable as it allows retailers to offer items that don’t exist anywhere else. This increases their brand’s differentiation and appeal and
drives store loyalty.”
This area is still undeveloped in Australia amongst convenience retailers, but offers retailers, and suppliers, opportunities for differentiated, value products at possibly higher margins than some national brands. It is certainly worthwhile exploring this for your business, be it a retailer, or supplier seeking new opportunities in the growing convenience channel.
The link below will take you to the full Nielsen report on the AACS members website.
Click Here to read the Full Report