Convenience Store
Overview
Convenience stores (c-stores) offer speed of service to time-conscious customers who want to quickly pick up what they desire. There are about 144,000 stores that generate sales of approximately $350 billion in sales per year. The beast known are 7-Eleven, Circle-K, and those affiliated with large oil company brands.
Competitive Landscape
The vast majority of c-stores, 65% of transaction dollars, are small and independently owned operations that are satisfying neighborhood needs. Their profitability depends on:
- competitive pricing
- offering specialized goods or services, and
- high-traffic locations
Because c-stores sell numerous types of merchandise, they compete with a wide range of retailers:
- gas stations
- grocery stores, and
- restaurants
Operations
Store size ranges from a kiosk (about 800 feet) to a traditional storefront which has a floor space of 2,000 square feet on average. Despite the footprint they are mostly located in high traffic locations, road intersections or within densely populated communities. The key to success is to have a highly level of repeat customers that visit the location on a frequent basis. This is why they focus on and drawl over 75% of their business from within a four mile radius of the location.
Typical non-fuel merchandise includes:
- high volume goods (beverages)
- impulse items (snacks)
- staples (milk), and
- prepared foods (sandwiches)
Over the last decade convenience stores have expanded their average floor space so that they could embed third party counter space into the stores. The most visible examples of the partnership crafted with local franchisees of fast food restaurants. These mini-outlets provide a limited menu of items that are prepared and delivered several times a day from the local restaurant. This concept has also trickled over into providing shelf space or cart space for the local bakery or coffee shop.
They are truly were the first, and are now the last mom-and-pop neighborhood stores.
