Overview

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

IBISWorld’s industry research report on Convenience Stores contains five-year forecasts and data analysis that can help you identify and mitigate risks in potential new markets. Position yourself as an expert with internal stakeholders by using our comprehensive industry research to inform your reports, proposals and presentations. Our business information will save you money by helping you make better decisions, faster.

REPORT SNAPSHOT

Market Share of Companies
Industry Statistics & Market Size
Revenue
$27bn
Annual Growth
12-17
0.3%
Annual Growth
17-22
Profit
Employment
143,763
Business
42,032

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

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    Industry Analysis & Industry Trends

    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...

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    Industry Report - Industry Products Chapter

    Convenience stores primarily serve as a source for fill-in items to supplement total food store purchases. Therefore, stocking the right mix of a limited product selection is critical to the success of this industry.

    Tobacco products

    Convenience store chains are trying to reduce their dependency on tobacco products due to increased government regulation and taxation, and escalating consumer health concerns; however, the industry is still heavily reliant on tobacco sales. Tobacco consistently constitutes this industry's largest product category, and sales have grown as a proportion of its revenue over the past five years. According to the National Association of Convenience Stores, tobacco products are estimated to account for 35.9% o..

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    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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    Look under the hood?

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    Industry Products

    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

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Percentage of smokers
  • Agricultural price index
  • Healthy eating index

  • 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

  • Products & Markets
    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
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • 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
    Major Companies
    7-Eleven Inc.
  • Table: 7-Eleven Inc. - financial performance

  • Operating Conditions
    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
    Key Statistics
    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
    Jargon & Glossary
    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 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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