Why 7-Eleven is selling its own potato crisps

Supermarkets in the US are more reliant on branded products than their counterparts in Europe, which have bigger selections of private label goods. But the recession is being treated by US retailers as a chance to have another go with private label.

Wal-Mart has relaunched itsGreat Value private label brandand I had an interesting chat today with executives from 7-Eleven, the Japanese-owned convenience store chain, which is trying to do the same thing with its7-Select private label brand.

I have never known whether the apparent reluctance of the US consumer to choose private label brands is due to his or her inherent preference for brands (stimulated by brand advertising) or whether something else is going on.

Interestingly, Jeff Schenck, the head of franchising for 7-Eleven in the US says it is more driven by distribution patterns.

Mr Schenk said 7-Eleven’s steady development of its own supply chain was one reason why it was now confident in the potential of 7-Select products, such as its own line of potato crisps. “We call it taking our stores back,” he said.