Private Label Penetration Remains Low at C-stores

NEW YORK -- Private label penetration remains low at convenience stores compared to other retail channels, according to a new Nielsen report released this month.

Unlike the high and growing penetration at supermarkets, drug stores and other channels, just 2.4 percent of c-store sales were from private label goods during the 52-week period ending Aug. 4, 2012.

By contrast, private labels have accounted for 18 percent to 19 percent of supermarket sales in the past three years, and around 15 percent of drug store sales. The report suggests this is at least partly due to name brands in several categories doing much of their business from c-stores. These categories include tobacco and accessories, beer and carbonated drinks.

In fact, during 2011, men accounted for 54 percent of shopping trips to convenience stores, while at the same time accounting for a minority of trips to other retail channels such as groceries (37 percent), drugstores (32 percent), and supermarkets (31 percent).