Private label boosts revenue at 7-Eleven
Dallas, Texas-based convenience store chain 7-Eleven is looking to model its U.S. stores after those in Japan after first quarter results revealed that the company’s private label and fresh food departments are driving revenue.
According to Dallas News, after reporting its highest operating income ever, with a 3.4% comparable-store sales increase driven primarily by its fresh food and the company's 7-Select private brand products, the company’s Japanese parent company, Seven & I Holdings Co. Ltd., says it wants to grow private label and fresh food within its U.S. 7-Eleven locations.
"The development and improvement of fast food items is important and something which we will be doing going forward," Seven & I Holdings Co. said in its first-quarter report. "We also believe changing public perceptions of 7-Eleven in the United States to be important. In order to change public perception when it comes to buying food products at 7-Eleven, like is common in Japan, we will be strengthening store cleanliness and improving customer service."
The retailer's U.S. operating income of $161 million was up $31 million from a year ago, according to the company’s first quarter report, adding that the U.S. business allowed its parent company to post profits that exceeded its guidance for the three months ending in March.
For 7-Eleven's U.S. stores, the sales momentum continued this spring, according to the first quarter report, with same-store sales up 5.2% in April and 2.8% in May, the company reported.