Impulsive drive: Changing consumption patterns have supported growth despite fierce competition

The Convenience Stores industry sells an extensive selection of products, including chilled food, tobacco, frozen products, toiletries and various other household goods. Industry establishments fall into two categories: non-affiliated independent retailers and symbol group-affiliated franchises. Over the five years through 2018-19, industry revenue is expected to increase at a compound annual rate of 2%. Changes in consumers’ purchasing habits, particularly in terms of top-up shopping, have supported this growth. However, supermarkets have begun opening smaller mini supermarkets, which operate in direct competition with convenience more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Supermarkets encroach on the industry, with the opening of more express-format stores
  • Non-affiliated stores have struggled to compete with the economies of scale that supermarkets benefit from
  • Operators are expected to undertake a number of initiatives to offer more complementary services
  • Industry Report - Industry Products Chapter

    TobaccoTobacco products include cigarettes, cigars, rolling tobacco and related paraphernalia. IBISWorld estimates that 20.7% of industry revenue comes from sales of tobacco products. However, as smoking rates decline and taxation on tobacco products increases, this product segment is likely to generate progressively less operating profit for operators. Despite this, the sale of tobacco is expected to remain an important way of maintaining footfall, which helps to contribute towards impulse purchases.Chilled foodChilled food is estimated to generate 13.3% of industry revenue. Chilled food includes products such as ready meals, cheese, yoghurt and cured and processed meat. Con...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

  • Proximity to key markets
  • Ability to control stock on hand
  • Attractive product presentation
  • IBISWorld analysts also discuss how external factors such as Real household disposable income and Total online expenditure 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 offer a wide variety of goods including tobacco, groceries and magazines. For a convenience store to be defined as such it must satisfy the following criteria: the size of the establishment must be under 3,000 square feet, it must not be subject to restricted opening hours under the Sunday Trading Act and it must not be positioned on a petrol station forecourt or centrally managed by a supermarket chain.

    Industry Products
  • Tobacco
  • Chilled food
  • Alcohol
  • Tinned and packaged food
  • Milk and soft drinks
  • Fruit and vegetables
  • Bread and bakery goods
  • Industry Activities
  • Selling bakery goods
  • Selling canned and packaged grocery items
  • Selling chilled and frozen food
  • Selling confectionery
  • Selling savoury snacks
  • Selling fruit and vegetables
  • Selling soft drinks
  • Selling alcoholic beverages
  • Selling tobacco
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household disposable income
  • Total online expenditure
  • Urban population
  • National minimum wage
  • Fuel prices

  • Current Performance
  • Consumer tastes
  • Puffing away
  • Important affiliations
  • Mergers and acquisitions
  • Local stores
  • Wages and employment
  • Chart: Revenue Growth

  • Industry Outlook
  • Mini supermarkets
  • Boosting footfall
  • Establishment expansion
  • Confidence shaken
  • 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
  • Confectionery Wholesaling
  • Dairy Product, Egg & Edible Oil Wholesaling
  • Grocery Wholesaling
  • Juice, Mineral Water & Soft Drink Wholesaling

  • Products & Services
  • Other
  • Tobacco
  • Chilled food
  • Alcohol
  • Milk and soft drinks
  • Tinned and packaged food
  • Fruit and vegetables
  • Bread and bakery goods
  • Chart: Convenience Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged between 25 and 44
  • People aged between 45 and 64
  • People aged 24 and under
  • People aged 65 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
    ProfitPurchasesWagesRentUtilities, depreciation and other
  • Chart: Cost Structure Benchmarking – Sector vs Convenience Stores

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Convenience Stores Industry

  • Industry Globalization
    Spar (UK) Limited, Nisa Retail Limited, Booker Group Ltd,
  • Table: Spar (UK) Limited - financial performance
  • Table: Nisa Retail Limited - financial performance
  • Table: Booker Group 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
  • 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
  • The online retail of grocery items.
  • Non-Affiliated Independent Retailers
  • These stores are not members of symbol groups. They own the brand under which they trade.
  • Symbol Group
  • As with a franchise, symbol groups do not own their members' establishments. Instead they act as suppliers and offer some assistance with branding and administration.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Convenience Stores market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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 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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