GROWTH OPPORTUNITY

PRIVATE BRANDS A KEY FOR C-STORES TO CONNECT WITH YOUNGER SHOPPERS

By Greg Sleter

Leading convenience stores across the United States continue to make headway with the ongoing development of their private label programs.

For many C-store chains, private brands are still a relatively new endeavor. But the success seen at mass and grocery stores and inside their own locations with select products has led a number of convenience stores to invest in personnel to drive product development.

But as C-stores boost their selection of private brands, what product categories should be their focus and how should they develop, merchandise and market these proprietary products to differentiate from retail competitors while giving shoppers something unique?

Chelsey Capps, director of Thought Leadership at Daymon, recently spoke with Store Brands and shared insight on the opportunities and challenges that convenience store operators face as they work to grow private brand assortments.

Q: What are some current trends related to how consumers are shopping retailers in the convenience store channel?

A: I think it’s an extremely fragmented channel by way of both ownership and geographic location. There are many towns in rural America where the local gas station or convenience store is truly their only retail outlet. So that makes C-stores fairly unique by way of having more challenges in the complexities of distribution.

Younger shoppers are, without a doubt, the largest demographic most frequently shopping at C-stores. So you’ve got 45% of Gen Z telling us that they shop at least monthly compared to just 16% of Gen Xers.

— Chelsey Capps, director of Thought Leadership at Daymon

Another element to C-stores is that younger shoppers are, without a doubt, the largest demographic most frequently shopping at C-stores. So you’ve got 45% of Gen Z telling us that they shop at least monthly compared to just 16% of Gen Xers. The other really interesting thing that transpired more recently is that higher income shoppers are also shopping at C-stores with data telling us that this group of shoppers has had the largest increase of C-store trips for Q1 of 2023.

Q: Are there any specific shopping behaviors that C-stores need to be aware of that provide opportunity for new sales?

A: There is a very interesting juxtaposition that happens inside a C-store. Personally, I hardly ever drink soda and will not buy it at the grocery store. However, when I walk inside a C-store, all of a sudden I turn into a kid again and I’m in the land of guilty pleasure and making decisions that I wouldn’t traditionally make if I was in any other channel of trade.

So that’s what makes it unique and fun, because there is this childlike element to C-stores where during a road trip you stop to buy your favorite candy bar or some ice cream. Now, is that to say that C-stores don’t have tons of opportunity to continue paving the way into more better-for-you options? Absolutely not. It’s just to