Convenience stores gained share in most of the East-Asian markets. From a retail perspective, the continent has areas of opportunity in the south,
Our market is booming. Convenience store industry sales rose 8.6% for 2002. Overall U.S. retail sales grew by only 6.3%, and grocery sales followed with 2.4% growth, proving once again that the convenience store industry has become a powerful force in U.S. retailing.
Convenience stores serve the entire purchasing population of its geographical area but focuses on customers who need to purchase items outside of normal working hours such as swing shift employees and quick shoppers looking for snacks and related items. Therefore we have segmented our market into night shoppers, quick shoppers, and others. Growth rates for these three segments match the population growth for the surrounding area.
Our main competitor is 7-11 which holds approximately 30% of the industry. Other competitors include Circle K, Fastrip, and any of the 85 grocery establishments on the east coast.
4.1 Market Segmentation
Our target market for our test store encompasses a five mile radius in which the approximate population is 150,000 (based on census information).
The majority of the residents in this area are Caucasian (58.8%) Black (23.6%) and Hispanic (19%) with occupations classified as professional/technical, homemaker, or retired. The majority of household incomes range from $20,000 - $30,000 (50.3%), yet there are also affluent household incomes ranging from $50,000 - $100,000 (15.4%).
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which is becoming increasingly attractive, as southeast is gradually losing its allure due to higher saturation rate. Still this region is growing faster than rest of the world with most countries showing nearly 10% growth in c-store market in 2004. China, India, Turkey, Vietnam, Russia, Romania and Bulgaria, offer the strongest investment opportunities for retail and consumer companies.
The median income in this area is $48,096, compared to the whole New York area which is $34,248. The typical "head of household" age is 25 - 34 (22.4%) or age 34 - 44 (23.1%) with a median age of 44.4 years old and an average age of 32 years old.
Target market segments
Convenience stores serve the entire purchasing population of its geographical area but focuses on customers who need to purchase items outside of normal working hours such as swing shift employees and quick shoppers looking for snacks and related items.
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However, Asian convenience retailing will have to exhibit a number of characteristics, including customer focus, a strong retail concept, scale, supply chain expertise and well-trained, motivated staff for strong growth of the market.
This report discusses the state of the Convenience store markets in Asian countries and the opportunities available for companies in this sector based on key statistics. We have tried to answer Key questions like:
- What is the market size of the Asian retail store industry, with regional segregation?
- What are the demographic factors influencing the Asian consumer pattern?
- What and where are the growth prospects and issues related to the industry?
- What are the factors driving growth in this sector?
- What are the technologies that can help convenience store markets to improve their operations?
- How these technologies are increasing operational efficiency in this industry?
- Who are the major players of Asian Convenience Industry, their presence and strategies
being used by them to improve profitability?
We have attempted to answer these questions, through the RNCOS Industry Information Service on Convenience Store Market-Asia. Our analysis and outlook of Convenience Store Market would serve as a key input for your business decisions and performance evaluation.
Key Highlights and scope of the Convenience Store Market: Asia Report:
- Convenience Store Market: Overview, market size and growth
- Growth trend in Convenience Store Market in different geographical segments.
- Country wise SWOT Analysis of C-store market.
- Product wise analysis of sales trends in Convenience Store Market.
- Various technologies being used in the industry and its benefits.
- Country specific consumer behavior patterns in Asia.
- Company Analysis of top Asian C-Store players and their growth strategies
Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Late night shoppers 3% 78,000 80,340 82,750 85,233 87,790 3.00%
Quick shoppers 2% 42,000 42,840 43,697 44,571 45,462 2.00%
Other 3% 30,000 30,840 31,704 32,592 33,505 2.80%
Total 2.68% 150,000 154,020 158,151 162,396 166,757 2.68%
4.2 Industry Analysis
Convenience store industry sales rose 8.6% to $86.3 billion for 2002. Overall U.S. retail sales grew by only 6.3%, and grocery sales followed with 2.4% growth, proving once again that the convenience store industry has become a powerful force in U.S. retailing.
Pre-tax profit margin in the convenience store industry was the highest since 1988 (1.8%). The 2002 results confirm that a new, upward trend is emerging. This upward trend is based on several factors, and occurred along with a slow rebound in the general economy.
Merchandise sales per customer increased 7.4% in 2000 suggesting that convenience stores are placing higher priority in filling the customers' needs. Companies that align themselves properly to fill those needs will be successful in the future.
4.2.1 Competition and Buying Patterns
7-11 holds approximately 30% of the industry market, and in 1999 their net income was $160 million. Other competitors include Circle K, Fastrip, and any of the 85 chain grocery establishments on the east coast.
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