III. Industry Analysis
Over the past five years, the Convenience Stores industry has withstood fierce competition by offering convenience, value and a variety of fresh and healthy products. Industry operators have increasingly shifted product mixes to include food service products that are more profitable than items such as cigarettes, and have focused more on satisfying demand for quick and easy meal options. As a result, industry operators have benefited from consumers’ need for time-efficient and healthy food service.
Revenue for the Convenience Stores industry is forecast to increase, rising at an annualized rate of 2.5%. Consumers are expected to shop at convenience stores more frequently as more people become employed. Higher income levels will likely enable consumers to pay higher prices for convenience store accessibility. As the employment rate increases, there will likely be more foot traffic in highly populated areas, further boosting industry demand. Further, as disposable income levels rise, consumers are expected to turn to the convenience of industry establishments.