Convenience Stores in the US Industry Market Research Report Now Available from IBISWorld
While the landscape has changed, the industry will remain highly fragmented and focused on living up to its name. The industry’s emphasis on accessibility and easy transactions has helped it stay afloat during the economic recession and will support growth in the future. Convenience stores will maintain growth and profitability by offering convenience, value and a mix of fresh and healthy products. For these reasons, industry research firm IBISWorld has added a report on the Convenience Stores industry to its growing industry report collection.
Los Angeles, CA (PRWEB) July 28, 2012
Despite the tough economy and rising costs, the Convenience Stores industry has maintained growth and profitability by offering convenience, value and a mix of fresh and healthy products. The small size and accessibility of convenience stores allow operators to adapt to changing environments and consumer preferences, making them more resilient than supermarkets and other retailers. According to IBISWorld industry analyst Doug Kelly, “Convenience stores are shifting their product mix to offer more food service items that have higher margins than cigarettes and satisfy demand for quick and easy food options.” During the five years to 2012, profitability has only marginally declined due to the industry’s ability to shift its product mix and appeal to time-poor consumers.
In 2012, the top four companies will make up about one-third of industry revenue. This industry is characterized by a large number of small players, with the majority of industry operators employing fewer than 10 people. The dominance of independent operators goes back to the historical beginnings of the industry and continues because smaller companies are can quickly adapt to opportunities better than larger players. “Small companies can also compete effectively,” says Kelly, “by acquiring superior locations or offering specialized merchandise or services.” The two largest players will remain 7-Eleven Inc. and Alimentation Couche-Tard Inc.
While the landscape has changed, the Convenience Stores industry remains highly fragmented and focused on living up to its name. The industry’s emphasis on accessibility and easy transactions helped it stay afloat even during the economic recession. From 2011 to 2012, revenue is expected to grow 4.9% to $57.0 billion. This rate is higher than the average annual growth rate of 2.8% over the five years to 2012, indicating that improving economic conditions and increased consumer spending will benefit the industry.
As consumers become more pressured for time, the speed of convenience stores is proving valuable to customers, and other types of retailers have begun competing with the industry for the convenience-driven customer. However, the ability of larger stores to maintain lower costs is forcing the industry to consolidate to remain competitive, resulting in a declining number of operators. In the five years to 2012, the number of operators is expected to decline at an average rate of 0.3% annually to total 64,162. Consolidation is especially valuable in an environment of rising costs, particularly as credit card fees increase. Interchange fees and credit card use have gone up in recent years, causing the cost of card charging to take up a growing portion of revenue.
For more information, visit IBISWorld´s Convenience Stores in the US industry report page.
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IBISWorld industry Report Key Topics
This industry includes retail businesses that emphasize selling basic food, beverage and tobacco products at accessible locations and times. The industry excludes gas stations, grocery stores and small kiosks.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation´s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/7/prweb9744402.htm