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Convenience Store Tour Food Export-Midwest Convenience Products Buyers Mission October 4-7, 2008
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CONVENIENCE STORES SMALL HIGH MARGIN LIMITED SELECTION MOST OFFER GASOLINE TOTAL SIZE INCREASING… NEW STORES AVERAGING OVER 3,000 SQ. FT. EXPANDING READY-TO- HEAT, READY-TO-EAT ADDING NEW SERVICES... i.e., 7-Eleven, AM-PM, Wawa, Albertsons Express, etc.
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CONVENIENCE STORE FACTS: Convenience Stores sell over 80% of U.S. retail gasoline. Roughly 62% of convenience stores are run by “independent” operators. Texas has the most Convenience Stores in the United States, accounting for 10% total U.S. stores with over 14,000; Illinois ranks 9 th with around 4,500 stores.
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U.S. CONVENIENCE TRENDS Stores are adding more “convenience” for customers –92% have ATMS –68% sell money orders –16% have a carwash –Many are also pairing with hypermarkets, restaurants, gas stations and other businesses to make a “one-stop-shop” for customers
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U.S. CONVENIENCE TRENDS Super-sizing: Similar to restaurant trends, most c-stores have increased their beverage size. The “Big Gulp” and other super-sized drinks are common, while a small 8oz. Coffee is no longer offered by most. Hypermarkets are adding gas and convenience stations to their retail sites.
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U.S. CONVENIENCE TRENDS U.S. C-stores compete with other retailers by offering convenient locations, longer hours and easy in-and-out access to customers. Most stores offer Foodservice and are expanding their options.
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CHALLENGES IN THE U.S. Rising oil prices → less gas consumption Struggling U.S. economy → less disposable income Rising credit card fees → smaller profit margins
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TREASURE ISLAND Privately-owned company which has 7 stores in the Chicago area. The company is over 45 years old and is known as “America’s most European supermarket.” Features a wide variety of imported products and specialty foods, including high quality meats. Most stores are located in Chicago apartment complexes and commercial areas.
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CVS PHARMACY CVS is one of the largest pharmacy chains in the United States with approximately 6200 stores across 40 states. CVS sells prescription drugs, general merchandise, cosmetics & beauty products, film & photo-finishing services, greeting cards & convenience products.
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7-ELEVEN International Convenience Store Chain with stores in 18 countries. It’s the largest chain store in any category, beating McDonald’s by 1,000 stores.
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ILLINOIS TOLLWAY OASIS Rest areas composed of multiple vendors found along toll ways in Illinois. There are currently 7 oases. Contain fast food, convenience products and gas and offer free WiFi access for visitors.
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CONVENIENCE STORE TOURS Observe prices, products, locations and target markets in each of the locations. 15-30 minutes per stop ABSOLUTELY NO PICTURES will be allowed.
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