Views: 6 Author: Site Editor Publish Time: 2021-10-15 Origin: Site
According to data from NACS, the number of convenience store transactions decreased 13.9 percent in 2020, while industry inside sales increased 1.5 percent as customers visited local convenience stores for daily shopping needs.
Despite the struggles fuel battled in 2020 due to the COVID-19 pandemic, with the summer of 2021 in full swing, more than 47.7 million Americans took to the nation's roadways and skies this Independence Day (July 1-5), AAA reported.
Therefore, despite the global economic downturn, the future of convenience stores is still optimistic.
Here’re some advantages of convenience stores.
1. It doesn’t cost much to start a convenience store.
Although the cost to start a convenience store business which includes fuel at an important location in a community may cost over $1 million, it is also possible to start a store for around $10,000 in the United States. Much of the cost variation depends on if you’ll lease or own the property, if there is an existing business in place you can take over, and if there are franchising fees involved.
2. Items sold at a store come at a higher price
The benefit of a convenience store, from an ownership perspective, is that pricing is independent of recommended systems. Most customers are willing to pay a little more for the convenience of being able to purchase a wanted item close to home. Convenience stores can also provide an outpost for travelers, which allows for higher pricing because providing access to needed items saves time for the traveler, which is valuable to them. Even if there are multiple stores within a 5-mile radius, a convenience store will generate a loyal following, which creates income for the owner.
As pointed out earlier, they are popular with millions of consumers because of the convenience it offers them. Chances are that there is a store that is located at least 250 feet from your home or office. Moreover, the 24-hour service offered ensures that you can shop at any given time of the day or night.
4. Franchises are often available.
About 40% of the convenience stores operating in the United States are connected to a franchise opportunity. That equates to almost 60,000 convenience store locations. Although the cost of purchasing a franchise is like the cost of purchasing an established store, the actual costs are much lower than if you were creating your own brand. Most franchise owners become profitable faster than independent owners, and there is internal training and support offered by the franchising company.