Added convenience: Changing product mixes and higher incomes will boost demand

To combat recent competition, the Convenience Stores industry has offered convenience, value and a variety of fresh and healthful products. The small size and accessibility of convenience stores enable operators to adapt to changing environments and consumer preferences, making them more resilient than supermarkets and other food retailers. However, high competition has negatively affected profit margins, despite consolidation and the sale of higher-margin goods. As the economy recovers and disposable income levels rise, consumers are expected to turn to the convenience of industry establishments. Cigarette unit sales are expected to decline further, as health concerns and higher prices deter consumers from smoking...read more.

Industry Statistics & Market Size
Revenue
$27bn
Annual Growth 12-17
0.3%
Forecast Growth 17-22
Profit
Employment
149,320
Businesses
46,281
Market Share of Companies
What Our Customers Say

Industry Threats & Opportunities

  • Despite falling cigarette sales, greater focus on convenience and fresh food will help boost industry revenue and profitability
  • Acquisitions have helped major operators reduce costs and enter new regions with relative ease
  • Competition between supermarkets and convenience stores will be primarily price-based
  • Industry Report - Industry SWOT Analysis Chapter

    The Convenience Stores industry is in the mature stage of its life cycle. Industry value added (IVA), which measures the industry's contribution to GDP, is forecast to grow 1.0% in the 10 years to 2022. In comparison, GDP is projected to increase at an annualized rate of 2.0% during the same period. Volatile input prices over the early half of the five-year period resulted from a surge in the agricultural price index, which caused industry operators to raise prices for food items sold in their establishments, bolstering revenue. Additionally, other factors point to the maturity of this industry. For instance, enterprise and establishment growth are relatively stable, suggesting limited growth opportunity for new enterprises. Fur...purchase to read more.

    Additional Insights for the Convenience Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Convenience Stores Industry are

  • Proximity to key markets
  • Ability to control stock on hand
  • Attractive product presentation
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Percentage of smokers in the Convenience Stores industry impact industry performance..

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    What is the Convenience Stores Industry?

    Operators in this industry are retail businesses that primarily sell basic food, beverage and tobacco merchandise in convenient locations that are generally open during extended hours. This report excludes gas stations (IBISWorld report 44719), gas stations with convenience stores (44711), grocery stores (44511) and small kiosks.

    Industry Products
  • Tobacco products
  • Food service
  • Packaged beverages
  • Candy and snacks
  • Beer
  • Industry Activities
  • Retailing a limited line of goods with an emphasis on basic food, beverages and tobacco products
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Percentage of smokers
  • Healthy eating index
  • Urban population

  • Current Performance
  • Demand syncopates
  • Changing landscape
  • Stunted profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Continuing competition
  • Declining sales
  • Boosting profit
  • Table: Convenience Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Convenience Stores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Beer Wholesaling
  • Cigarette & Tobacco Products Wholesaling
  • Confectionery Wholesaling
  • Dairy Wholesaling
  • Frozen Food Wholesaling
  • Grocery Wholesaling
  • Soft Drink, Baked Goods & Other Grocery Wholesaling

  • Products & Services
  • Tobacco products
  • Food service
  • Packaged beverages
  • Other
  • Candy and snacks
  • Beer
  • Chart: Convenience Stores Industry Products and Services Segmentation

  • Demand Determinants
  • Convenience
  • Product mix
  • Cigarette use

  • Major Markets
  • Consumers aged between 45 and 64
  • Consumers aged between 25 and 44
  • Consumers under age 25
  • Consumers aged 65 and older
  • Other
  • Chart: Major Market Segmentation for the Convenience Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Convenience Stores

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Convenience Stores Industry

  • Industry Globalization
    7-Eleven Inc.
  • Table: 7-Eleven Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Convenience Stores Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Convenience Stores Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Consumer spending (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Interchange Fee
  • A fee that banks and credit card companies charge convenience store owners when consumers use credit and debit cards for purchases.
  • Metro Store
  • A scaled-down version of a supermarket that often has the qualities of a convenience store with lower prices.
  • Point-Of-Sale (Pos)
  • A system of computers and cash registers used at checkout in retail stores to capture transaction data at the time and place of sale.
  • Why buy this report?

    IBISWorld’s industry research report on Convenience Stores provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Convenience Stores:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Convenience Stores market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Convenience Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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