Hard sell: Strong external competition pushes operators toward new products and services

The Convenience Stores industry has operated in a rapidly changing environment over the past five years. Volatile consumer sentiment, subdued household disposable income growth and continued competition from small-format grocery stores, supermarkets and fuel retailers have challenged industry operators. Industry revenue is expected to grow at an annualised 0.2% over the five years through 2018-19, to $4.7 billion. Convenience store operators are expected to continue facing tough retail conditions in 2018-19, with industry revenue anticipated to fall by 1.4%. Many industry operators have attempted to meet challenging conditions by reviewing prices and product ranges to offer consumers value for money.Industry operators' performances have varied over the past five years...read more.

Industry Statistics & Market Size
Revenue
$5bn
Annual Growth 14-19
0.2%
Forecast Growth 19-24
Profit
Employment
29,936
Businesses
8,114
Market Share of Companies

Industry Threats & Opportunities

  • Convenience stores continue to face strong competition from major grocery chains
  • Competition has intensified due to supermarket innovations, such as self-service check-outs
  • Growth opportunities could stem from expanding fresh and healthy food options
  • Industry Report - Industry Key Buyers Chapter

    The Convenience Stores industry displays low market share concentration, with the top four players accounting for less than 30% of revenue. The industry only includes businesses that primarily sell convenience store goods and excludes all service stations. The industry is therefore highly fragmented and diverse, with a significant number of owner-operated enterprises. Even convenience stores that operate under banner groups and franchise agreements are usually run as individual businesses. The industry's barriers to entry are low and therefore do not significantly inhibit new players.The industry is divided into businesses that operate through franchise agreements or banner groups, and traditional independent convenience stores. The...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

  • Ability to control stock on hand
  • Attractive product presentation
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Demand from supermarkets and grocery stores and Population in the Convenience Stores industry impact industry performance..

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    What's in this report

    What is the Convenience Stores Industry?

    Convenience stores sell a range of products including cigarettes, beverages, confectionery, snack foods, ready-to-eat foods, mobile phones and accessories, magazines, newspapers, and general merchandise. The industry includes milk bars and corner stores and excludes businesses that primarily operate as supermarkets; sell specialised foods such as fruit, bread and deli goods; or generate most of their sales through fuel retailing.

    Industry Products
  • Tobacco
  • Beverages
  • Communications, travel and car accessories
  • Snacks, confectionery and ice cream
  • Ready-to-eat food
  • Printed materials
  • Groceries
  • Health and beauty products
  • Industry Activities
  • Convenience store operation
  • Tobacco product retailing
  • Beverage retailing
  • Grocery retailing
  • Confectionery retailing
  • Ready-to-eat food retailing
  • Newspaper and magazine retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from supermarkets and grocery stores
  • Population
  • Real household disposable income
  • Smoking rate

  • Current Performance
  • Convenient changes
  • Threat of competition
  • Profit margins
  • Franchises and traditional operators
  • Chart: Revenue Growth

  • Industry Outlook
  • Changing opportunities
  • Threat of competition
  • Profit margins
  • Industry structure
  • 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
  • Cosmetics and Toiletry Wholesaling
  • Dairy Produce Wholesaling
  • Fruit and Vegetable Wholesaling
  • General Line Grocery Wholesaling
  • Meat, Poultry and Smallgoods Wholesaling
  • Pharmaceuticals Wholesaling
  • Soft Drink and Pre-Packaged Food Wholesaling
  • Tobacco Product Wholesaling

  • Products & Services
  • Tobacco
  • Beverages
  • Snacks, confectionery and ice cream
  • Communications, travel and car accessories
  • Groceries
  • Ready-to-eat food
  • Printed materials
  • Health and beauty products
  • Chart: Convenience Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged 35 to 54
  • People aged 34 and under
  • People aged 55 and over
  • 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
  • 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
    Metcash Limited, 7-Eleven Stores Pty Ltd,
  • Table: Metcash Limited - financial performance
  • Table: 7-Eleven Stores Pty Ltd - 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 (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Banner Group
  • A group of independently owned and operated stores that display consistent branding and use a central buying function.
  • Point Of Sale Equipment
  • Used at checkout points to capture data at the time and place of sale. Computers are used to accurately and instantly capture the transaction.
  • Self-Service Check-Outs
  • Check-outs available for customers to use themselves with minimal supervision from a staff member. Also known as self-checkouts.
  • What Our Customers Say

    Why buy this report?

    The Convenience Stores market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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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