Inconvenient truth: External competition and falling tobacco purchases have affected revenue

IBISWorld’s Convenience Stores market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.


Industry Threats & Opportunities

  • Convenience stores continue to face strong competition from major grocery chains
  • Competition has intensified due to supermarket innovations, such as private-label ranges
  • Growth opportunities could potentially stem from expanding fresh and healthy food options

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    Industry Analysis & Industry Trends

    The Convenience Stores industry has operated in a rapidly changing environment over the past five years. Volatile consumer sentiment, fluctuating 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 fall by an annualised 0.3% over the five years through 2017-18. Many industry operators have attempted to meet challenging conditions by reviewing prices and product ranges to offer consumers value for money.

    Industry operators have varied in their performances over the past five years...

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    Industry Report - Industry SWOT Analysis Chapter

    The Convenience Stores industry is in the decline stage of its life cycle. Over the 10 years through 2022-23, the industry's contribution to the economy (industry value added) is expected to rise by an annualised 0.7%, which is a weak performance when compared with annualised GDP growth of 2.5% over the same period. This indicates that the industry is growing at a slower pace than the overall economy.

    The number of industry establishments is forecast to grow by an annualised 0.8% over the 10-year period. Store openings will be driven by prominent players such as 7-Eleven and Lucky 7, which operate under franchise agreements and banner groups. How..

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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

  • Ability to control stock on hand
  • Access to multiskilled and flexible workforce
  • Experienced work force
  • IBISWorld analysts also discuss how external factors such as Demand from supermarkets and grocery stores and Demand from fuel retailing in the Convenience Stores industry impact industry performance..

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    Industry Products

    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
    Communications, travel and car accessories
    Snacks, confectionery and ice cream
    Ready-to-eat food
    Printed materials
    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

    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
  • Demand from supermarkets and grocery stores
  • Demand from fuel retailing
  • Consumer sentiment index
  • Real household disposable income
  • Smoking rate
  • Population

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

  • Industry Outlook
  • Convenient changes
  • Threat of competition
  • Profit margins
  • Franchises and traditional operators
  • 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
  • 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 15 to 34
  • People aged 55 and over
  • 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
  • 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
    Metcash Limited7-Eleven Stores Pty Ltd
  • Table: Metcash Limited - financial performance
  • Table: 7-Eleven Stores Pty Ltd - 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
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Banner Group
  • A group of independently owned and operated stores that display consistent branding and use a central buying function.
  • Point Of Sale (Pos)
  • Used at checkout points to capture data at the time and place of sale. Computers are used to accurately and instantly capture the transaction.
  • Time-Poor, Cash-Rich Consumers
  • Consumers seeking convenience and quality from products.
  • 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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