Pit stop: An increased focus on convenience and fresh food will boost industry revenue

Over the five years to 2018, the Convenience Stores industry in Canada has withstood increasing competition by offering convenience, value and a variety of fresh and healthful products. Industry operators have increasingly shifted product mixes to include food service products that are more profitable than items like cigarettes and have focused more on satisfying demand for quick and easy meal options. Consequently, industry revenue is expected to grow. As the economy recovers and disposable income levels rise, consumers are expected to turn to the convenience of industry establishments. Over the five years to 2023, industry revenue is expected to grow...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • As the economy recovers and disposable income levels rise, consumers are expected to turn to the convenience of establishments
  • Regulations prohibiting smoking in public spaces have contributed to decreased tobacco sales
  • Changing consumer health trends will further challenge the industry
  • Industry Report - Industry Products Chapter

    Convenience stores primarily serve as a source for fill-in items to supplement total food store purchases. Therefore, having the right mix of a limited product selection is critical to convenience stores' success.Tobacco productsConvenience store companies are trying to reduce their dependency on tobacco products due to threats of government regulation and taxation, in addition to escalating consumer health concerns. The industry is still heavily reliant on tobacco sales, however, as this segment is expected to generate 43.2% of revenue in 2018. Sales from this product segment have increased as a portion of industry revenue over the past five years. Chewing tobacco and electronic cigarettes represent the fastest growing category within the tobacco products segment...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

  • Ability to control stock on hand
  • Attractive product presentation
  • Maintenance of excellent customer relations
  • IBISWorld analysts also discuss how external factors such as External competition for the Canadian Convenience Stores industry and Per capita disposable income in the Convenience Stores industry impact industry performance..

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    What's in this report

    What is the Convenience Stores Industry?

    This industry consists of retail businesses that primarily sell basic food, beverage and tobacco merchandise in convenient locations during extended hours of operation. This report excludes gas stations, gas stations with convenience stores, grocery stores and small kiosks. See IBISWorld report 44711CA for information on gas stations with convenience stores and IBISWorld report 44719CA for information on standalone gas stations.

    Industry Products
  • Tobacco products
  • Beverages
  • Candy and snacks
  • Beer and wine products
  • Other products
  • Food services
  • Industry Activities
  • Retailing tobacco and tobacco products
  • Retailing dispensed and bottled beverages
  • Retailing prepared food
  • Retailing food prepared on-site for immediate consumption
  • Retailing OTC medication and other sundries
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • External competition for the Canadian Convenience Stores industry
  • Per capita disposable income
  • Leisure time
  • National unemployment rate
  • Number of adults aged 20 to 64
  • Percentage of smokers

  • Current Performance
  • Favourable demand conditions
  • Regulations pose ongoing challenges
  • Industry shift toward consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Competition continues
  • Regulations pose challenges, opportunities
  • 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 in Canada

  • Key Selling Industries
  • Candy Production in Canada
  • Cigarette & Tobacco Manufacturing in Canada
  • Snack Food Production in Canada
  • Soda Production in Canada

  • Products & Services
  • Tobacco products
  • Other products
  • Food services
  • Beverages
  • Candy and snacks
  • Beer and wine products
  • Chart: Convenience Stores Industry Products and Services Segmentation

  • Demand Determinants
  • Convenience
  • Cigarettes

  • Major Markets
  • Consumers aged 45-64
  • Consumers aged 25-44
  • Consumers aged 65 and older
  • Consumers aged under 25
  • 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
    ProfitPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Convenience Stores

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

  • Industry Globalization
    7-Eleven Inc.,
  • Table: 7-Eleven Inc. - 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Percentage of smokers (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Mom-And-Pop Store
  • A business that is owned and operated in a single location with few or no employees other than the owner or owners.
  • Point Of Sale (Pos)
  • A system used at checkout in retail stores using computers and cash registers to capture transaction data at the time and place of sale.
  • Saq
  • The Societe dee alcool du Quebec, or a government-run liquor shop in Quebec.
  • 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 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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