Convenience Store Industry Statistics, Sales Data, Market Share & Trends 2016-2024 by Goldstein Market Intelligence

Global Convenience Store Industry Outlook

Global Convenience Store Industry Outlook 2024: Opportunity & Growth Analysis, 2016-2024

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Global Convenience Store Industry Outlook

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Request Sample Repo Request Sample Repo rt Convenience stores (C-stores) have seen dramatic growth across the globe, and rt more is set to come, both in terms of store counts and revenue. Although the layout and selection of goods offered in C-stores can differ greatly region to region, some of the major trends driving C-store proliferation—such as expansion of food categories, additional conveniences, and private label products—are shared across geographies.

Technological Advancements

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 The food category has become an essential component of C-store sales and profitability. In the U.S.—which has the world’s highest C-store count at XXX,000— food services sales accounted for XX% of total in-store sales of USD XX billion in 2016, up from XX% of USD XX billion in 2012.

 In Japan, where C-stores number XX,000 (still high by world standards), food service items, including processed foods, fast food, and daily delivered food, made up XX% of fiscal 2016 convenience store business net sales for Lawson —the second-largest C-store chain in the country. In China, more than XX% of revenue for both Japan-based 7-Eleven and Family Mart C-stores came from boxed lunches. And for Greencore Group, a dominant supplier of processed food to Cstores in the U.K., saw XX% growth in its U.K. Food-to-Go category in 2014.

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 Emerging markets are also seeing more snacking as consumer trends become more westernized. In China, as the country progresses economically, there is evidence that middle-class workers snack more, as they have less time for traditional meals. In Vietnam, the growing economy coupled with a young population—the majority is under age 30—has led to growth in packaged foods, which are often purchased in modern retail channels, such as C-stores.  Another common trend is the use of private label brands to help C-stores grow their margins. Private-label brands generally tend to be of comparable quality to national brands, but more attractively priced.

Global Convenience Store Industry Size (USD Billion) North America

Europe

2016

USD XX Billion

2024

USD XX Billion

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E-commerce

Natural and Organic Products

Fresh Foods and Vegetables

Global Convenience Store Industry Size (USD Billion) & Growth Analysis Fig: 13: Global Convenience Store Industry Size (USD Billion)-2016-2024

Request Sample Repo rtRequest Sample Repo rt XX

XX XX

XX 2016e

2017e

Source: Goldstein Research

2018

2019

2020

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2021

2022

2023

2024

Global Convenience Store Industry is

anticipated to expand at a compound annual growth rate of XX% during the forecast period i.e. 2016-2024. The market is anticipated to reach USD XX Billion by the end of 2024. Competition in the food retail market has increased in recent years. Traditional food retailers have faced fierce pressure from alternative channels including warehouse clubs, supercenters, drug stores, mass retailers and convenience stores, as well as online retailers and grocery delivery services. As consumers distance themselves from the traditional supermarket model, grocery retailers are attempting to stay competitive by creating more intimate and innovative shopping experiences tailored to individual shoppers with an emphasis on fresh, organic and prepared food options. Stiff competition, evolving consumer preferences and a challenging organic growth environment are driving many food retailers to evaluate their store and brand portfolios and consider strategic alternatives, including M&A, in order to optimize capital allocation and growth opportunities. Fresh food sales are increasing, along with consumer buzz and interest in eating and living well. In the U.S., XX% of grocery shoppers buy fresh products, and fresh perimeter aisles have become places where grocers establish their identities. Copyright

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Growth Drivers

Request Sample Repo Opportunities Sample Repo rtRequest with rt continued innovation in global,

Adding Further Conveniences 

A second trend that is broadening the customer base of Cstores worldwide is the introduction of additional conveniences and services not traditionally associated with C-stores. These may not be direct revenue drivers, but they do attract more customers into stores, leading to more potential purchases. One of the most successful and widespread has been the installation of ATMs.

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Success has also come from partnerships between ecommerce retailers for delivery and pick-up of packages at C-stores, which can be less costly and more convenient than home deliveries. In Taiwan, the four major C-store chains handle over 1 million packages every month. This service is so far more limited in the U.S., with Amazon (AMZN) paving the way with deliveries to 7-Eleven stores set up with lockers.

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Other common new conveniences offered in the C-stores include ticket sales, utility payments, postal box service, and even parking ticket payments. For instance, 7-Eleven stores in Thailand recently began offering AirAsia booking and payment services. Japan, which again seems at the cuttingedge in C-store evolution, has begun selling nonprescription drugs and offering consultations with pharmacists/dieticians via video phones in its Lawson stores.

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Even regional and local supply chain and delivery capabilities, the online-only grocery business model remains challenging. However, consumer demand for online food offerings has increased in recent years, providing an incentive for traditional brick-and-mortar retailers to enter the online segment.

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Even with continued innovation in global, regional and local supply chain and delivery capabilities, the online-only grocery business model remains challenging. However, consumer demand for online food offerings has increased in recent years, providing an incentive for traditional brick-and-mortar retailers to enter the online segment.

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Fig: 5-3 Influence of Mobile Loyalty Programs in Selecting C-Storesby Different Generations (%) XX% XX%

XX%

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XX%

XX% XX% XX%

XX%

The industry is incredibly dynamic and there is constant pressure to adapt formats to address evolving customer preferences. Larger players have been much more receptive to operating a broad portfolio of store formats, whether developed in house or through acquisition.

Impact Analysis: Growth in healthy food and beverages sales led to positive overall sales at convenience stores in 2017, and retailers expect the momentum to continue in 2018, according to a survey of retailers released today by the National Association of Convenience Stores (NACS).  Competition for the convenience store customer is the top concern of retailers heading into 2018, with nearly half (XX%) saying that they expect to continue competing with other channels and other convenience and fuel retailers (XX%).

XX% XX% Millenials

Generation X

Baby Boomers

Silent Generation

High

Medium

Source: Goldstein Research

Impact on Global Convenience Store Industry Copyright

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Low

Market Restraints

Request Sample Repo Sample Repo rtRequest Convenience retailing continues to evolve and change globally. Yet in light of competition from other retailers such as rt and living, major convenience supermarkets and quick service restaurants, and emerging lifestyle trends like healthier eating

Growing Competition

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stores may not be seen as meeting these competitive and business challenges.

 Even with the evolving channel landscape, convenience stores will continue to grow, with new stores leading the charge. They will also claim an increased percentage of channel spend as well, albeit not at the same pace as e-commerce.  As a consequence of several consumer shifts, including digital technology usage and driving trends, Americans are making fewer shopping trips than just a few years ago. According to Nielsen Homescan data, the total number of U.S. retail trips is down more than XX million since 2012 (XX billion in 2016, vs. XX billion in 2012).

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 Aside from food and store layout, convenience retailers need to be continually innovative. The includes marketing more intelligently and across digital platforms, developing personalized offers and rewards that are determined directly by individualized consumer shopping and purchase habits.

Fig: 17: Total Number of Conventional Stores (Thousand), 2012 - 2017 XX

m a S XX

XX XX

XX XX XX XX

2012

2013

2014

2015

2016

2017

Impact Analysis: Especially today, it is crucial that grocery store managers understand exactly what their customers need - and then provide exactly what their customers need. Grocery stores in particular feel the burn of competition because there are so many stores that are similar that it is incredibly easy for a customer to walk in, not find what they want, and then walk right back out and into the doors of another similar store that has that one extra item that the other store did not.  Grocery stores typically have lower profit margins than other stores, so it is even more important that they are constantly on top of ways to run their operation cleanly and efficiently. Labor costs are one of the only costs that a retailer can control, and so a grocery store should be on that like white on rice.

Source: Goldstein Research

High

Medium

Low

Impact on Global Convenience Store Industry

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Global Convenience Store Industry Outlook : 2016-2024 Request Sample Repo Fig: 17: Global Convenience Store Industry Share, By Product Type, 2016-2024

Food XX%

XX%

26.92%

27.69%

Tobacco

2016 XX%

Beverages

XX%

2024

Snacks and Candies Others

6.92% 17.69% 8.46% 12.31%

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As per Global Retail Development Index (GRDI) countries from AsiaPacific such as India, China, and Malaysia topped the GRDI list in terms of both size and momentum thus proving to be potential to develop convenience store market which is at an initial stage. But U.S. has existing huge market of convenience store owing to the sale of fuel and packed food available at these stores located along the roadside, in an urban area or inside a transport hub.

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This industry has grown over the past five years, benefitting from a Source: Goldstein Research strengthening economy and the trend toward organic and all-natural Fig: 17: Global Convenience Store Industry Y-O-Y Growth, By brands, especially as consumer Product Type, , 2016-2024 spending has increased. However, the industry is mature, and revenue is expected to grow at a rate below national GDP over the next five years (XX%, annualized) as compared to annualized growth of XX% from 2012 to 2017. Fuel

2016e

2017f

2018f

m a S 2019f

2020f

2021f

2022f

2023f

Generally, over XX% of a c-store’s sales are motor fuels; however, fuel typically contributes only one-third of total convenience store gross margin dollars

2024f

Fig: 17: Global Convenience Store Industry Size (USD Billion), By ProductType-2016-2024 XX

XX XX

2016 Fuel

Source: Goldstein Research

Food2

2024 Beverages2

Tobacco2

Snacks and Candies2

Others2

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Global Convenience Store Industry Outlook : 2016-2024 Request Sample Repo Fig: 17: Global Convenience Store Industry Share, By Food Products, 2016-2024 XX XX

XX XX XX

XX XX XX XX XX XX

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Recent snacking statistics support the idea that C-store food consumption should continue to climb. According to Goldstein research, eating habits are shifting from the standard three meals a day to more frequent snacking, with snacking accounting for half of all eating occasions in the U.S. The study also found that when purchasing food for immediate consumption, consumers are four times more likely to visit a C-store than when food shopping for nonimmediate consumption.

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Global consumption of fresh food grew XX% in 2016 versus 2015. Source: Goldstein Research Further, the global “functional Fig: 17: Global Convenience Store Industry Y-O-Y Growth, By Food food” market—defined as foods Product Type, , 2016-2024 that have a potentially positive effect on health beyond basic nutrition—is estimated to have generated revenues of approximately USD XX billion in 2013. With its annual average growth rate of XX%, that puts it on track to reach USD XX billion by 2015. C-stores recognize that meeting this new demand for fresh or more nutritional food is essential 2016e 2017f 2018f 2019f 2020f 2021f 2022f 2023f 2024f to growing revenue. 2016e

2017e

2018f

2019

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2023

2024

Fig: 17: Important Factors Consumers Consider in Selecting a Conventional Store to Purchase a Meal Family-Friendly Environment Key Decision Factors

Healthy Food Food/Menu Variety Food Quality Price Location 0% Source: Goldstein Research

10%

15%

20%

25%

30%

35%

40%

45%

50%

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Global Convenience Store Industry Attractiveness and BPS Analysis by Rental Type, 2016-2024 Fig: 17: Global Convenience Store Industry Attractiveness-By Product Type, 2016-2024 XX%

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XX%

CAGR (%)

XX%

XX% XX

Food

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Beverages

Source: Goldstein Research

XX XX Market Size (USD Million)

Tobacco Products

Fuels

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Snacks and Candies

Others

Fuel holds the largest revenue share in the global convenience store industry. Meanwhile, new rivals are shaking up the market for c-stores’ traditional offerings like in-store merchandise and fuel. Amazon’s new brick-and-mortar stores and Walmart’s move to a smaller store format in urban areas are cases in point. Cigarettes remain an important category for c-stores, constituting roughly XX% of in-store sales. But in the long term, the category could shrink in size compared with other tobacco products. In all foodservice segments, players are jockeying to win on-the-go and bargain-minded consumers. And the competition will only stiffen. For one thing, segment rivals are encroaching on c-stores’ playing field. For example, some grocery chains and mass-merchant competitors are expanding their convenience and prepared-food offerings, and some are moving to a small-box format

Fig: 17: Global Convenience Store Industry BPS Analysis- By Type 2016-2024 160% 140% 120% 100% 80% 60%

XX% XX%

XX%

Snacks and Candies

XX%

Tobacco

XX%

Others

XX%

Beverages Food

40% 20%

XX%

2016

2024

Fuel

0% Source: Goldstein Research

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North America Convenience Store Industry Size (USD Billion) & Y-O-Y growth (%), By Region- 2016-2024 North America Convenience Store Industry Size (USD Billion)-2016-2024

Request Sample Repo rtRequest Sample Repo rt XX%

XX%

CAGR: (2016-2024)

XX XX

XX%

XX XX

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XX%

XX XX

XX%

XX XX XX 2016e

2017e

Source: Goldstein Research

XX%

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North America North America Convenience Store Industry Size (USD Billions), By Country-2016-2024

2020f

XX%

2021f

XX% XX% XX%

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North America North America Convenience Store Industry Size (USD Billion), By Product Type-20162024

XX%

XX% XX%

XX%

XX XX

XX%

XX XX

XX% XX% 2016

XX% 2016

2024

Canada

Source: Goldstein Research

Fuel

Food2

2024 Beverages2

Tobacco2

Snacks and Candies2

Others2

Source: Goldstein Research

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United States Convenience Store Industry Size (USD Billion) & Y-O-Y growth (%), 2016-2024

United States Convenience Store Industry Size (USD Billion), Compound Annual Growth Rate Request Sample Repo (%), Y-O-Y Growth Rate (%), 2016-2024 Request Sample Repo

XX%

XX XX XX 2016e

XX%

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2017e

XX%

CAGR: (2016-2024)

XX%

2018f

2019f

2020f

Source: Goldstein Research

Key Insights

The U.S. convenience store count increased to XXX,000 stores as of December 31, 2017, a XX% increase (XXX stores) from the year prior. Overall, nearly 80% of convenience stores (XXX thousand total) sell fuel Single-store operators within the convenience retail space also increased by XX units (XX%), up from XX,000 stores at year-end 2016 to XXXX stores at year-end 2017. Further, the supermarkets and grocery store industry makes up the largest food retail channel in the United States. Industry revenue totaled approximately USD XX billion in 2016, and profit was USD XX billion

XX%

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XX% XX% XX%

XX%

2022f

XX% XX% XX% XX%

2023f

Fig: 24: U.S Increase in No. of Convenience Stores, 2012-2016

2016

2017

2018

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2024

Source: Goldstein Research

C-stores in North America should continue to grow, as small-format stores are projected to see a XX% CAGR from 2016 to 2024 versus XX% for big-box stores. According to Goldstein Research, XX% of current retail sales growth is coming from stores of 35,000 square feet and smaller, and over one-third of that portion is coming from stores 5,000 square feet or smaller. In the U.S., C-stores have grown by over XX% from 1984 to 2013, to approximately XXX,000 stores. However, the top 100 convenience store operators only account for XX% of the stores and the top XX account for XX%. Copyright

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Global Convenience Store Industry Outlook Alimentation Couche-Tard (Company Overview & Business Strategy)

Founded 1980

Employees 120,000

Company Overview 

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Headquarters Canada

Business Segments

Alimentation Couche-Tard Inc. or simply Couche-Tard is one of the largest company-owned convenience store operators in the world with around 15,000 stores across Canada, the United States, Europe, Mexico, Japan, China, and Indonesia.

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The company primarily generates income through the sale of tobacco products, groceries, beverages, fresh food, quick service restaurants, car wash services, other retail products and services, road transportation fuel, stationary energy, marine fuel, and chemicals. In addition, the company operates more stores under the Circle K banner in other countries such as China, Egypt, and Malaysia. Its operation is geographically divided into U.S., Europe, and Canada.

Population Health Management Clinical Solutions

Open & Interoperable Solutions

Service and Technology

Revenue Cycle Management

Revenue from external customers fall mainly into three categories: merchandise and services, road transportation fuel, and other.

Business Strategy

Expansion and Investment Strategy: Couche-Tard has structured its field organization to allow it to preserve local innovation with the goal of engendering future ideas that it can extend globally, according to the report. Its business unit leaders, each supported by a full management team, manage no more than 500 stores. This allows them to operate like their own companies, and to visit every one of their stores at least once a year. In Europe, Couche-Tard operates a broad retail network across Scandinavia (Norway, Sweden and Denmark), Poland, the Baltics (Estonia, Latvia and Lithuania) and Russia under the Statoil and Ingo brands. As of Oct. 11, 2015, it comprised 2,217 stores, the majority of which offer fuel and convenience-store products, while the others are unmanned automated gas stations that offer fuel only.

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Global Convenience Store Industry Outlook

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