RNCOS reports on ‘expanding reach’ of U.S. convenience stores mp1

As retail sales in the U.S. are increasing year by year, so are sales through convenience stores, according to the research firm RNCOS. In 2006, convenience store sales constituted around 13% of total retail sales and this share is expected to rise in future, according to the researchers.

Total convenience store sales in the U.S. include motor fuel sales and in-store sales. Motor fuel sales made up 71.3% whereas in-store sales accounted for approximately 28.7% in total sales in 2006, the researchers said March 28 in announcing the release of a report of their findings.

Titled, "U.S. Convenience Stores: A Market Analysis,” the study analyzes the proliferating market of convenience stores and the opportunities and factors critical to operators’ success.

Regionally, southern U.S. states continue to dominate the convenience-store industry. Researchers found that 81,340 convenience stores in the southern U.S. accounted for around 49% of total U.S. convenience stores in 2006. The rising store count in the country is creating new opportunities for suppliers of technologies such as radio-frequency identification (RFID), closed-circuit television (CCTV) and biometrics, according to the company.

In recent years, the research firm said, convenience-store operators have started to take strategic steps to improve operations, enhance performance and differentiate from the competition. However, the changing nature of convenience retailing and margin pressures brought on by encroaching competitive formats is driving convenience store industry consolidation.

Key issues and facts that are analyzed in the report include:

- Market size of the U.S. convenience-store industry
- How convenience stores are growing by state
- What factors are driving growth
- What technologies can help improve operations
- What strategies are being used by major players to improve profitability

The report contains information on operators such as 7-Eleven Inc., Kroger, Ahold N.V., Shell Oil Products US, Alimentation Couche-Tard Inc. and Sunoco, Inc.

The report is based on information from books, newspapers, trade journals, and white papers, industry portals, government agencies, trade associations, monitoring of industry news and developments, and through access to over 3,000 paid databases, the company said.