Convenience Store - Definition, Importance, Types & Example
Published in Marketing and Strategy Terms by MBA Skool Team
What is Convenience Store?
Convenience store is a small retail shop that sell the items of everyday usage, essentials or items like groceries, toiletries, soft drinks etc. These convenience stores may also offer basic services like telephone booths, photocopying, or courier services. These stores generally do their business in a popular residential area or close to a business hub with offices. They are usually found closer to gas stations, shopping malls, highways etc. hence they are known as convenience stores as they offer convenience in addition to another core task.
The convenience stores are generally small in size (Average around 2500 square feet), and keep limited stock as compared to supermarket or a grocery store.
Importance of Convenience store
Convenience stores are standalone small stores in and around a populated neighborhood. Such stores are also present at petrol pumps and gas stations. A person who buys gas, diesel or petrol for their car, can easily go to one of these stores and get products as per his or her needs. These stores can also be located at highways, near railway stations etc.
Because of the sheer convenience they provide, they are known as convenience stores. These stores can serve customers 24x7x365 or can have specific timings depending upon the area or permission or business requirement.
Convenience goods like foods items, grocery, beverages etc. are mostly present at convenience stores. Depending upon the demand, demographics and business requirements, these shops change their product base to maximize sale and reduce inventory at their store.
There are many types of convenience stores. We have covered 5 major types here:
Kiosk is a very small convenience store which is constrained in a very small location typically less than 600-800 square feet. These are typically attached to other big businesses like petrol pumps, car wash, repair centers, movie theatres and offer a source of additional revenue through these kiosks.
2. Mini Format
Mini Formats are bigger than kiosks but still act as part of a bigger location like a big shopping mall or gas stations. These are standalone and may have a dedicated area, parking space and offerings to the customers.
They offer a good product and service mix including groceries, music, gaming etc.
3. Limited Format
Limited Convenience stores are bigger in size and product portfolio. Along with what the mini and kiosk convenience stores offer, the limited stores also offer food products and fast food items which can be picked up by customers while visiting a nearby landmark or on their way to highways.
Traditional Convenience stores are the most common ones. They are about 2500 square feet in size and offer a lots of products, groceries, food items etc. as part of their portfolio. They offer near 24x7 service. These stores can also be part of a bigger chain e.g. 7-eleven
Hyper Convenience stores offer a lot of space and offerings as compared to traditional stores. They are built in huge spaces and may have small coffee shops and sitting spaces within them. Along with the usual products and services of a convenience store, Hyper stores may offer more. They also may have emergency services, ATMs, restaurants etc.
Difference between convenience store and grocery store
Convenience stores are smaller in size when compared to a grocery store and supermarket. Only things required for basic needs like toiletries, foods items, soft drinks etc. are kept at such stores. The cost of buying at a convenience store is slightly higher as compared to a supermarket as they keep smaller quantities and thus have limited margins. On the other hand, big supermarkets and grocery stores do a business on volume and can afford to give products at a lesser rate.
Example of Convenience store
7-Eleven is a very famous example of a chain of Convenience stores in many countries. 7-Eleven is present in around the world and has more than 70000 locations globally. It is known for its 24x7 working hours along with its own brands like Slurpee.
Hence, this concludes the definition of Convenience Store along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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