Convenience store
A convenience store, bodega, convenience shop, corner store or corner shop is a small
In some
A convenience store may be part of a
Convenience stores often charge significantly higher prices than conventional grocery stores or supermarkets, as they buy smaller quantities of inventory at higher per-unit prices from wholesalers. Customers benefit from their longer open hours, more convenient and greater number of locations and shorter cashier lines.[6]
Terminology
A convenience store may also be called a cold store,
Merchandise
This section needs additional citations for verification. (June 2023) |
Various types include, for example, liquor stores (
Varying degrees of food and grocery supplies are usually available, from household products to prepackaged foods like sandwiches and frozen
Many convenience shops offer food ready-to-eat, such as breakfast sandwiches and fry-ups. Throughout
Fast food items are often available, with stores offering such food either under its owner banner or in partnership with a fast-food chain maintaining a counter in the store. To save space, food is not prepared in the store. Instead, these counters offer a limited menu of items delivered several times a day from a local branch of the restaurant, with items intended to be served hot either kept hot under a warming device or reheated as ordered.
Convenience stores may be combined with other services, such as general stores and pawn shops, a ticket counter for purchasing railway tickets, a post office counter, or gasoline pumps. In Asian countries like Japan or Taiwan, convenience stores are more common because of the higher population density. They are found with gasoline and train stations, but also can be stand-alone stores. Items such as soft drinks or snacks, hot dogs, sausages and fish cakes can be found in these stores. Delicatessens are absent; instead, pre-made sandwiches are available. Non-consumables such as magazines are also sold, but to a lesser degree. Many convenience stores have a beverage fountain that offers coffee, soft drinks, and frozen beverages.
Stores often stock fast-moving consumer goods; items with a high turnover are preferred over items with a lower sales rate. The smaller convenience stores typically have few perishable items because it is not economically viable to rotate perishables frequently with a low number of staff. Smaller convenience stores also do not generate the business needed to sustain food spoilage rates typical of grocery stores or supermarkets. As such, products with a long shelf life are the rule, unless a product is specifically aimed at attracting customers on the chance they may buy something profitable, too.[citation needed]
Differences from supermarkets
Although larger, newer convenience stores may have a wide range of items, the selection is still limited compared to supermarkets, and in many stores only one or two choices are available. Prices in a convenience store are often higher than those at a supermarket, mass merchandise store or auto supply store, as convenience stores order smaller quantities of inventory at higher per-unit prices from wholesalers. Some convenience stores are similar to corner markets, but often have less variety in food.
Product containers in a convenience store are often smaller with reduced product quantity to allow more products on the store shelves. This reduces the apparent cost differences between full-size packaging in supermarkets. Reduced packaging also reduces waste when a traveller such as a hotel guest does not want to or cannot carry leftover product with them when they depart.
The average U.S. convenience store has a sales area of 2,768 square feet (257.2 m2). New stores average about 2,800 square feet (260 m2) of sales area and about 1,900 square feet (180 m2) of non-sales area—a nod to retailers recognising the importance of creating destinations within the store that require additional space—whether coffee islands, food service areas with seating, or financial services kiosks. Convenience stores have expanded their offerings over the last few years, with stores becoming a part-supermarket, restaurant, gas station and even a bank or drug store.[12]
In the United States, convenience stores are sometimes the only businesses near an
By country
Australia
The Australasian Association of Convenience Stores (AACS), the peak body for Australian convenience stores, defines a convenience store as a "retail business with the primary emphasis placed on providing the public with a convenient location to quickly purchase from an array of consumable products, predominantly food and beverages, services as well as petrol." The product mix includes: food to go, beverages, dispensed/barista coffee, snacks (including confectionery), tobacco, basic groceries, ice, petrol and carwash. Stores may offer services such as ATMs, "click & collect", gas bottle exchange, money transfer and lottery tickets. A key feature of convenience stores is their extended hours of operation. Many are open 24 hours a day, seven days a week.
The majority of convenience stores in Australia are small businesses, being either independently owned or operated under franchise or licence agreement. The industry comprises over 6,000 stores and employs well over 40,000 people as of mid-2018. The Australian convenience channel merchandise sales are valued at $8.4 billion (excluding petrol sales) according to the AACS State of the Industry Report 2017. Australia has a flourishing convenience industry with a number of well-known convenience brands including: 7-Eleven, Ampol, NightOwl, Ezymart, BP, APCO, Coles Express, On The Run, Viva Energy, Freedom Fuels and Puma.
Canada
Alimentation Couche-Tard Inc., which operates Couche-Tard, Provi-Soir, Dépanneur 7, Circle K, Mac's, Winks, and Becker's, is the largest convenience store chain in Canada and receives its products through Core-Mark International, a North American distribution company specializing in fresh convenience.[13] Another large chain is Quickie Mart (whose name predates the fictitious "Kwik-E-Mart" featured on The Simpsons). The world's largest convenience retailer, 7-Eleven, has about 500 Canadian locations from British Columbia to Ontario. Worldwide, the highest number of the chain's Slurpee beverages are sold in Winnipeg, Manitoba and the city has been awarded the title of the "Slurpee Capital of the World" for many years running.[14] Marketing itself as "more than just a convenience store", there are over 260 Hasty Market locations throughout Ontario and one in British Columbia.
In addition to chain convenience stores, there are also many independently owned convenience stores in Canada.
Convenience stores are also commonly referred to as "corner stores", "mini-marts" or "variety stores" in some regions of Canada. In the French-speaking province of Quebec, a convenience store is known as a "dépanneur" or "dep" for short, even among some when speaking in English.[15]
Chile
Other brands operating mostly in downtowns and middle-to-upperclass neighborhoods are Ok! Market (owned by Unimarc), Big John and
Costa Rica
In Costa Rica, family-owned and operated convenience stores called pulperías have been common since the 1900s, and there are many of those stores in every neighbourhood.
In the 2010s, modern convenience stores were introduced, mainly by the AMPM company. Competitors launched brands such as Musmanni Mini Super (a chain of bakery stores promoted to convenience stores), Vindi (operated by AutoMercado supermarket company) and Fresh Market (operated by AMPM in a format appealing to prosperous neighborhoods).
Finland
In
Smaller towns often have independent kiosks. Convenience stores at service stations are run by either the station's parent oil company such as
France
In France chain convenience stores are referred to as "supérettes", implying they are mini-supermarkets. Brands include Carrefour City, Casino Shop, Coccimarket, Daily Monop', Franprix, G20, Leader Price Express, Marché Plus, Sherpa, Sitis, Spar, Utile, Vival... (see Magasin de proximité [fr]).
Some other, independent convenience shops are referred to as "
Germany
Berliners lovingly refer to the small neighbourhood shops with late opening times found throughout the city (often operated by families with immigrant roots, akin to France) as Späti (translating to "Lat(e)y", derived from Spätkauf, "late purchase").
In North Rhine-Westfalia people call the same kind of shop either Kiosk, like the Finnish, (using the word in a way differing from the rest of Germany, where "Kiosk" usually means only stall-like buildings or other very small window-selling shops which are not entered by customers and which sell either newspapers and magazines or snacks and cigarettes, or a combination of these, but no household goods) or Trinkhalle ("drinking hall"), although they are not pubs, as the name might suggest.
A name used for market stalls and also in some regions for little shops is Büdchen (from Bude, "stall, hut, room"); where no special local name for them exists, often just the equivalents of "small shop" or "corner shop" are used ("der kleine Laden/ das Lädchen/ das Lädchen an der Ecke").
Snack shops integrated into petrol stations can also have long opening hours, but in contrast to the neighbourhood Späti-type shops, petrol station shops nowadays are usually part of large retail chains.
"
India
In India, "mom-and-pop" convenience stores are called kirana stores and constitute part of the traditional food retail system.[19] Kirana are typically family-owned stores that operate in fixed locations and carry both basic food and non-food items.[19]
Indonesia
Supermarket-styled convenience stores in Indonesia (commonly known as "minimarket") are mostly scattered around the towns. Due to local government restrictions in Indonesia, usually convenience stores may only be built at least 500 meters from the nearest traditional market.[20] This allows traditional markets to continue selling local goods, but also greatly lowers the opportunities for profit by those who seek to build or own a convenience store by reducing the eligibility of property to be developed into a convenience store. This is especially true in small towns and rural areas. As a result, convenience stores in rural areas are often built side-by-side or at maximum within 50 meters of each other.
The two major national convenience store chains in Indonesia are
, on the other hand, have their stores in big cities and cater to a specific lifestyle instead of focusing on "convenience". To be classified as a convenience store, the store should occupy no more than 100 square meters of service area; in some local residences, the limit is 250 square meters.The Indonesian government also regulates the convenience store license process, so it can only be bought by franchisees, using a different name and different brand, or classifying it as cafeteria.[21] A convenience store with a cafeteria license is only allowed to sell a maximum 10% of its service space for non-food/beverages product. This type of convenience store often puts lawn chairs and a desk as a decoy in front of their stores, while offering the same range of products as a holder of a mini market license.
There are many small neighborhood stores, known as toko kelontong or warung. Some are sponsored by a network of stores, mostly owned by cigarette companies (such as DRP by Djarum, GGSP by Gudang Garam or SRC by Sampoerna) or tech companies (such as Mitra Bukalapak).
Japan
Convenience stores (コンビニエンスストア, konbiniensu sutoa), often shortened to konbini (コンビニ), developed at a tremendous rate in
Convenience stores rely heavily on the point of sale. Customers' ages and gender, as well as tomorrow's weather forecast, are important data. Stores place all orders online. As store floor space is limited, they must be careful in choosing what brands to sell. In many cases, several stores from the same chain do business in neighboring areas. This strategy makes distribution to each store cheaper, as well as making multiple deliveries per day possible. Generally, food goods are delivered to each store two to five times a day from factories. Since products are delivered as needed, stores do not need large stock areas.[23]
According to The Japan Franchise Association, as of October 2021[update] (data pertaining to the month of July 2021), there are 55,931 convenience stores in Japan.[24] 7-Eleven leads the market with 12,467 stores, followed by: Lawson (9,562) and FamilyMart (7,604). Other operators include Circle K Sunkus (acquired by Family Mart in 2016; now defunct), Daily Yamazaki, Ministop, Am/Pm Japan (acquired by Family Mart in 2009; now defunct), Poplar, Coco Store (acquired by Family Mart in 2015; now defunct) and Seico Mart. Many items available in larger supermarkets can be found in Japanese convenience stores, though the selection is usually smaller. As well, the following additional services are also commonly available:
- Courier and postal service.
- Photocopying and faxservice.
- Automated teller machines.
- Payment service for utilities and other bills and taxes.
- Ticket service for airlinesetc.
- Pre-paid cards for cellular phones.
Some stores also sell charging service for
Konbini also offer customers the option of making konbini payments (often also referred to as just konbini), an offline payment solution that allows customers without credit or debit cards to make online purchases. A consumer can buy online services or goods, such as video games on Steam[26] or tickets for events. By selecting konbini as payment method at the checkout, the consumer receives a unique transaction code with an expiration date. Depending on the brand (i.e. 7–11 is slightly different from Family Mart), consumers will have to go to any convenience store and finalise the purchase, which can be either at the cashier or at the kiosk. Multiple providers offer konbini as checkout option for foreign companies selling online in Japan, such as Adyen, Degica and Ingenico ePayments.
In 1974, Japan had 1,000 convenience stores. In 1996, Japan had 47,000 convenience stores and the number was increasing by 1,500 annually. Peter Landers of the Associated Press said that the computerised distribution system allows Japanese convenience stores to stock a wider variety of products, allowing them to be more competitive in the marketplace. Because of this technology and the consequent ease of maintaining the right amount of stock, Japan can support one convenience store for every 2,000 people, while in the United States it is one per 8,000 people. Another contributing factor to the widespread proliferation of convenience stores is that, because Japan has a lower crime rate, store owners are not reluctant to keep stores open at late hours in the night and customers are not reluctant to shop during those times.[27]
Malaysia
In Malaysia, 7-Eleven is the market leader in convenience shops, with over 2,000 shops.[28][29] Other convenience shops in the country are myNEWS.com, 99 Speedmart, KK Super Mart, Quick and Easy and MyMart (owned by Mydin). FamilyMart is also found in Malaysia and as of July 2020, has opened its 200th store[30] in Malaysia with the goal of opening 1000 stores by 2025, bringing the 'konbini' concept to Malaysia.[31]
Convenience stores are very popular among Malaysians, especially urban dwellers in Kuala Lumpur or other populated towns like Penang where the population density is higher. Its 24/7 policy allows Malaysians to have easy access to necessities or as an alternative hang-out area, especially since Malaysians love to go out for midnight supper at mamaks and eateries that also open late at night, as more and more Malaysians are beginning to work or go out late. The availability of fresh hot food or cold premade food is popular among young workers with less time to prepare food for themselves, as many have irregular work hours, especially in the city. It also eases the burden of families. Many Malaysians also enjoy the seasonal food that these stores provide. These stores can be found almost anywhere, especially in areas with a higher population density, such as city centres, condominiums, apartment complexes, office areas, residential areas, shop lots and petrol stations, although the store density is as high as Taiwan or Japan.[citation needed]
Items sold at such convenience shops usually range from pre-made local food like nasi lemak, onigiri, buns, snacks, toiletries, drinks, a limited amount of alcohol, newspapers, magazines, slushies, cup noodles, ice cream, hot food, oden, game reload and mobile top up cards. Some also have the service of reloading Touch N' Go cards or ATMs. Most have a microwave oven and hot water boiler to heat food. Some have seasonal and limited food, desserts or special imported products and items, like FamilyMart importing strawberry Coca-Cola from Japan.[citation needed]
Malaysia has sundry shops that sell daily items and perishables at lower prices, but unlike convenience shops, they are not open 24/7. Some of these sundry shops also sell traditional herbs and ingredients.
Mexico
Misceláneas (literally meaning "place where miscellaneous items are sold" and otherwise called tiendas de abarrotes (grocery store) in some parts of the country) are smaller, family-run convenience stores often found in central and southern Mexico. They operate in many locations, from rural communities to
Mongolia
In Mongolia, convenience shops (CU (store), Circle K etc.) are already common and continue to gain popularity, making the market increasingly saturated with retailers. Currently CU (store) is the market leader, with the largest number of stores and the highest reputation among customers.
New Zealand
In New Zealand, convenience shops are commonly referred to as dairies and superettes. Dairies in New Zealand are generally independently owned and operated. The use of the term dairy to describe convenience shops was common in New Zealand by the late 1930s.[33] Dairies carved out a niche in food retail by keeping longer trading hours than groceries and supermarkets – dairies were exempt from labour laws restricting trading hours and Saturday trading. With the deregulation of trading hours and in the wake of legislation in 1989 prohibiting sales of alcohol by dairies, the distinction between dairies, superettes and groceries has blurred.[34]
Peru
Convenience stores in Peru are typically independent corner stores called "bodegas" that include groceries, alcohol, services and phone booths. Other convenience stores are found at gas stations in urban and connecting areas on highways; examples include Listo! (owned by Primax) and Repshop (Repsol). Recently, Tambo+ [es], owned by Corporación Lindley S.A., has quickly become the biggest convenience store in the country with 300 stores opened in just two years.[35] Mexican-owned Oxxo has plans to expand to Peru.[36]
Poland
Philippines
There is a local version of convenience store in the Philippines, called the sari-sari store, that is located on almost every street, corner, residential area, and other public places around the country.
Aside from local convenience stores, other popular international convenience stores are present on almost every street, especially in urban areas. 7-Eleven is the largest convenience store chain in the country. It is run by the Philippine Seven Corporation (PSC). Its first store, located in Quezon City, opened in 1984, and has now approximately 2,285 branches.
There are also many branches of
Russia
Major brands of convenience stores in Russia are Pyatyorochka ("little 5") with over 10000 shops functioning,[39] Monetka ("little coin"), "Magnit u doma", "Krasnoe i Beloe" and Diksi.[40] However, Russians may occasionally use the word "supermarket": various convenience store chains used to position themselves as "supermarkets" throughout 1990's, such as now discontinued "Sed'moy Kontinent" (translates as "the 7th Continent") company.
Pyatyorochka line of stores has self-checkout tills, as well as Perekryostok line of stores. Both brands belong to X5 Group and even have a mutually compatible "club card". However, many discounts/sales in both stores require buyers to have "loyalty cards" to unlock the wares' respective discounts.
Singapore
Major convenience shops in
Various reasons unique to Singapore have been given for the popularity of convenience shops. Convenience shops sell a wide range of imported goods, whereas minimarts and provision shops sell local products with a limited range of non-Asian products.
7-Eleven
The number of 7-Eleven outlets continued to increase in 1984 while other chains were having difficulty expanding. One Plus was unable to expand due to the shortage of good sites. The original owners of the Myshop franchise, which had seven outlets, sold out to one of its
In 1985, 7-Eleven faced difficulty in finding favourable locations and failed to meet its one-shop-a-month target. The situation improved in 1986 with a new
policy was seen as the reason that gave 7-Eleven its edge over its competitors.In 1990, there was a rise in the number of shop thefts in 7-Eleven. The
Cheers
Started in 1999, Cheers is owned by local corporation NTUC FairPrice.[53] Cheers has adopted 7-Eleven's 24/7 model and taken similar security measures to prevent cases of shoplifting. Convenience shop owners seeking franchising seem to prefer Cheers over 7-Eleven, probably due to its cheaper franchise fee.[54]
South Africa
In South Africa's black townships spaza shops sell small goods, often out of the proprietors' homes. However these businesses face competition from large chain stores.[55] Spaza shops owned by immigrants have also become a source of tension in townships.[56][57]
In white, Indian and Coloured areas, the corner cafe (called a tea room in Durban) is a convenience store. In white areas these were often owned by Southern European migrants.[58][59] These cafes are being superseded by convenience stores that are part of fuel service stations.[60][61]
South Korea
Convenience stores in the
Taiwan
Boasting more than 10,000 convenience stores in an area of 35,980 km2 and a population of 23 million,
Taiwan's second largest convenience store chain is FamilyMart with more than 3,000 locations. Also competing for customers are Hi-Mart, a Taiwanese chain, and OK Mart, a local version of Circle K.
Because they are found everywhere, convenience stores in Taiwan provide services on behalf of financial institutions and government agencies, such as collection of city parking fees, utility bills, traffic violation fines, and credit card payments. Eighty percent of urban household shoppers in Taiwan visit a convenience store each week.[64]
-
It is common in Taiwan to see different brands of convenience store sit near by.
-
It is also not rare in Taiwan to see 2 convenience stores sit next to each other.
United Kingdom
The corner shop in the United Kingdom grew from the start of the
as simple, family-owned corner shops.The name corner shop originated because such shops are traditionally located on the corner of an intersection.
The reign of the corner shop and the weekly market started to fade post–World War II, with the combination of the personal motor car and the introduction from the 1950s onwards of the American-originated
The primary competition to this privately owned 'corner shop' model came from the network of
Due to a number of
From the late-1960s onwards, many such shops started to be owned by expatriate African-born Indians, expelled from their homelands by the newly independent countries' rulers (see
More recently, due to a combination of competition laws and a lack of large-scale development space, many of the larger retail brands have now developed shop formats based around convenience shop and corner shop scale spaces, including
United States
In-store convenience store sales grew 2.4%, reaching a record $195.0 billion in 2011.[68] Combined with $486.9 billion in motor fuels sales, total convenience store sales in 2011 were $681.9 billion, or one out of every 22 dollars of the overall $15.04 trillion U.S. gross domestic product.[69] In New York City, "bodega" has come to mean any convenience store or deli.[70]
The first chain convenience store in the
In the gasoline service station may be seen the beginning of an important advance agent of decentralization by way of distribution and also the beginning of the establishment of the Broadacre City. Wherever the service station happens to be naturally located, these now crude and seemingly insignificant units will grow and expand into various distributing centers for merchandise of all sorts. They are already doing so in the Southwest to a great extent.
Frank Lloyd Wright, The Disappearing City, 1932
In 1939,[72] a dairy owner named J.J. Lawson started a store at his dairy plant near Akron, Ohio, to sell his milk. The Lawson's Milk Company grew to a chain of stores, primarily in Ohio.[72] Circle K, another large company-owned convenience store chain, was founded in 1951.
Since that time, many different convenience store
In 1966, the US convenience store industry first recorded $1 billion in sales. By the end of the decade, the industry had recorded $3.5 billion a year in sales. The first 24-hour store opened in Las Vegas in 1963. By the late 1960s, the number of 24-hour convenience stores increased to meet the needs of a younger population and people who were working late night or early morning shifts.
Some convenience stores in the US also sell gasoline. Only 2,500 stores had self-serve at the pump by 1969. It was not until the 1970s that retailers realized selling gasoline could be profitable and competitive.[73] At the same time, two energy shortages in the decade had many service station owners stop selling fuel altogether since they made more money off of vehicle maintenance, while others decided to convert their garages into convenience stores, noting that they met a need and in some cases netted more profits than garages.
In 2011, there were approximately 47,195 gas stations with convenience stores that generated $326 billion in revenue.[74] Of the 150,000 convenience stores in the country, 120,000[inconsistent] of them are located at fuel stations, which sell approximately 80 percent of the fuels purchased in the country.[75]
Policies regarding the sale of
Because the laws regarding the sale of alcoholic beverages vary from state to state in the US, the availability of
Crime
American convenience stores are often targets of
Most convenience stores have a cash drop slot into a time-delay
Similar concepts
Convenience stores to some extent replaced the old-fashioned
Neighborhood grocery stores not big enough to be considered a supermarket often compete with convenience shops. For example, in Los Angeles, a local chain operates neighborhood grocery stores that fill a niche between a traditional supermarket and convenience shop. Because they stock fresh fruit and fresh meat and carry upwards of 5,000 items, they have a lot in common with the supermarket. Due to the relatively small store size, customers can get in and out conveniently or have purchases delivered. In Belgium, convenience shops known as night shops are only permitted to open at night.[79]
See also
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Further reading
- Sanabria, Carlos (2017). The Bodega: A Cornerstone of Puerto Rican Barrios. The Justo Martí Collection. Chicago: Centro Press. ISBN 978-1-945662-06-5.
- Wang, Hansi Lo (10 March 2017). "New York City Bodegas and the Generations Who Love Them". Code Switch (story series). All Things Considered. National Public Radio. Retrieved 11 March 2017.
- Werner, Cosima (2023). Convenience Stores as Social Spaces: Trust and Relations in Deprived Neighborhoods in the U.S. Lexington Books. ISBN 978-1666930771.
External links
- Convenience Store News (convenience store industry trade publication and online news source)
- Convenience Store News Canada (Canada's convenience store industry trade publication, event and news source)
- Convenience Store Decisions (convenience store industry trade publication)
- Australian Convenience Store News (industry trade publication)
- NACS, the Association for Convenience and Fuel Retailing