Convenience Stores, Trend Report
ABMI has been specializing in listing and selling Convenience Stores, Service Stations, Truck Stops, Liquor Stores, Grocery Stores, and related businesses for almost 30 years, in metroplitan Kansas City, Missouri, Kansas, and throughout the Midwestern USA, and beyond, including helping business buyers arrange the financing needed for the acquisition. On most projects ABMI works on a straight commission basis, with no advance fees charged to business buyers or sellers.
If you'd like informaiton on how to buy or sell a Kansas City Convenience Store, or a Missouri Convenience Store, or a Kansas Convenience Store, or Liquor Store or Grocery Store, you may phone ABMI at 913-341-6300, or register with this web site, and we will contact you.
Below is information that may help entrepreneurs understand certain trends within the Convenience Store industry.
The state of the convenience store industry has been evolving. There are a number of metrics that can be used to gauge the state of an industry. One of the key metrics in the convenience store market is number of stores.
As of the end of 2004, there were 138,205 convenience stores in the United States according to the new National Association of Convenience Stores (NACS)/TDLinx Official Industry Store Count. The year end figure in 2004 represented a 5.8 percent increase over the 130,659 stores identified at year end 2003.
The increase in the number of stores is in part a reflection of the evolution of existing non-convenience stores that were reclassified or remodeled and now meet the NACS/TDLinx definition of a convenience store. The NACS definition of a convenience store is a store, which includes a broad merchandise mix and a minimum of 500 stock-keeping units (SKUs).
While the overall store count is increasing, it is important to note that the industry is not without its casualties. Approximately one in 20 stores closed in 2004 (7,472 stores, or 5.7 percent of all stores). These closings were more than offset by 13,970 new stores added to the store count.
The convenience store industry has traditionally been dominated by small, "independent" operators -- stores that are owned and operated as a one-store business or franchise. This tradition continues to define the ownership landscape. The number of one-store owners increased in 2004 by 11.5 percent. Independent operators now own approximately 61.3 percent of all stores in the United States .
According to the National Association of Convenience Stores (NACS), there were a total of 98,200 convenience stores in the Unites States ten years ago. At the same time, there were approximately 195,455 gasoline outlet stations. Less than 50% of the gasoline in the country was delivered through convenience stores.
The number of convenience stores that sell motor fuels has been consistently increasing over time. Today 80.2% of all convenience stores (111,895) sell motor fuels. NACS estimates that these stores sell approximately three-quarters of all the motor fuels purchased in the country. Approximately 60% of the independent stores sold motor fuels, while 90% of the stores operated by companies owning 500 or more stores sold motor fuels. Kansas was among the states with the highest percentage of stores selling motor fuels (96.9%). Other States with a high percentage included North Dakota (98.3 percent of all stores), South Dakota (97.5 percent), Wyoming (97.2 percent), and Iowa (97.0 percent).The two states that mandate full-service for motor fuels sales had among the lowest percentages of stores selling motor fuels. New Jersey had the smallest percentage of stores selling fuels (31.5 percent), and Oregon had the third lowest (50.7 percent). Other states in the bottom five were Massachusetts (43.5), New York (53.5 percent) and Hawaii (54.8 percent).
One of the most recognized sources for information on the convenience store industry is the National Petroleum News (NPN) http://www.npnweb.com/ .
The NPN defines a store as a retail outlet that also sells gas. According to an annual survey conducted by the NPN, the number of gasoline retail outlets in the nation increased in 2005 for the first time in over a decade. This survey, conducted in May each year, indicated a total number of outlets selling gas of 168.987. This is an increase of 1,641 from the 2004 store count.
Convenience Store Count
|Dist. of Col.||100||120||20.0%|
Notes: Washington's figure reflects the reporting agency's modification of its data collection technique for the information it reported to NPN.
Source: NPN survey.
These statistics may not seem significant when viewed alone, however viewed in the context of historical trends, it takes on a more significant image. The number of stores has been steadily decreasing since 1995 when there was a reported 195,455 stores selling gas in the United States.
The changes in store count on a state-level are not linked to a specific reason. There are various factors that have impacted the markets on local levels. These factors include the growing involvement of supermarkets in the retail gasoline sector.
While the number of retail gasoline outlets on a national level increased, over half of the states reported a decline number of stores. There is a shift toward higher volume pumps in the marketplace to handle additional volume as an alternative to building new stations. Many stores are replacing the older single-hose dispensers with three-hose dispensers.
The state of the convenience store industry appears to be very strong. Increased consumer demand will continue to fuel innovation and expansion in this marketplace.
"There's no question that consumer demand for convenience continues to increase, and this demand is leading to more stores fitting the definition of convenience stores. As competition for the convenience customer continues to intensify, it is clear that stores are increasingly looking to meet the demand." Teri Richman, NACS senior vice president of research and public affairs.
For a free, no obligation consultation about buying, selling or financing the purchase of a Convenience Store, Truck Stop, Liquor Store, Grocery Store, or related business, please phone ABMI at 913-341-6300, or register with this web site, and we will provide you with free information.