Convenience Stores

The US convenience store (c-store) industry includes about 120,000 stores with combined annual revenue of an estimated $400 billion. Major companies include 7-Eleven; Circle K (a division of Alimentation Couche-Tard); and The Pantry. Large oil companies own and operate some c-stores. The industry is fragmented: the top 50 companies account for about 35 percent of industry sales.

The industry generally includes establishments that are gas station/c-store combinations.

COMPETITIVE LANDSCAPE

Consumer and commercial driving trends drive demand. The profitability of individual stores depends on competitive pricing, effective merchandising, and the ability to secure high-traffic locations. Large companies have advantages in purchasing and finance. Small companies can compete effectively by acquiring superior locations or offering specialized merchandise or services. Average annual revenue per worker is about $500,000 for gas station/c-store combinations and $150,000 for c-stores without gas.

Because c-stores sell gas, food, and other types of merchandise, companies compete with a wide range of retailers, including gas stations, grocery stores, mass merchandisers, and warehouse clubs. C-stores that sell prepared meals also compete with restaurants.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products sold include fuel (60 to 70 percent of sales); groceries and cigarettes (15 percent each); and beer (5 percent). Fuel includes regular, mid-grade, and premium unleaded gas; and diesel fuel. Groceries include soft drinks, candy, snacks, and dairy products. Stores may also sell meals or lottery tickets. Services include money orders and check cashing.

The industry includes national ...