Convenience, Mom And Pop Stores Market Definition
The convenience, mom and pop stores market consists of sales of goods and some services through convenience, mom and pop stores by entities (usually sole traders or partnerships but in some cases organizations) that provide the retail service of supplying food, toiletries and other daily necessities to their consumers through conveniently located small stores.
Convenience, mom and pop stores are neighborhood retail outlets, in the case of this report, it refers only to those which sell a limited range of food and groceries such as prepared and ready-to-eat foods, bottled and fountain beverages, household staples, basic toiletries, tobacco products, periodicals and other essential items.?These types of stores are mostly smaller in size, generally around 300 square meters, have limited employees and are open for extended hours. Convenience, mom and pop stores can be a family owned business or a retail chain business.
Convenience, Mom And Pop Stores Market Size
The global convenience, mom and pop stores market reached a value of nearly $960.8 billion in 2019, having grown at a compound annual growth rate (CAGR) of 5.5% since 2015, and is expected to grow at a CAGR of 5.7% to nearly $ 1,201.3 billion by 2023.Also the market is expected to growth to $1,370.6 billion in 2025 at a CAGR of 6.8% and to $1,851.1 billion in 2030 at a CAGR of 6.2%.
Growth in the historic period resulted from strong economic growth in emerging markets and increasing population density in urban areas. Factors that negatively affected growth in the historic period were increase in costs and shortage of skilled work force.
Going forward, technological advancements is expected to drive the market. Factors that could hinder the growth of the convenience, mom and pop stores market in the future include COVID-19 pandemic and geo-political tensions
Convenience, Mom And Pop Stores Market Drivers
The key drivers of the convenience, mom and pop stores market during 2015-2019 included:
Rapid growth in technology is expected to drive market growth during the forecast period. Areas of particular development are likely to be POS (point-of-sale) technology, beacons, robotics, automation and augmented reality. For example, retail companies are increasingly investing in drone technology to reduce delivery times and increase profitability. A drone is an unmanned aerial vehicle (UAV) that is remotely controlled or flies autonomously through software-controlled flight plans in their systems.ii Major convenience store companies as 7 Eleven have started drone deliveries long before the other small competitors. 7 Eleven started its drone deliveries in December 2016 and completed about 77 such deliveries in a month. Ordered items, including food and over-the-counter medicine, were packed into special containers and flown by drones that used GPS capabilities to find addresses.iii Thus, the convenience, mom and pop stores industry is expected to benefit from the greater efficiencies offered by these technologies.
Convenience, Mom And Pop Stores Market Restraints
The key restraints on the convenience, mom and pop stores market during 2015-2019 included:
Rising geopolitical tensions are expected to have a negative impact on the convenience, mom and pop stores market during the forecast period. Repercussions of geopolitical tensions included sanctions on Russia, trade protectionism and heightened military tensions in the Middle East. Sanctions on Russia were related to the violation of Chemical and Biological Weapons Control and Warfare Elimination Act of 1991. Many countries placed trade restrictions, especially on imports, to boost local production. For instance, Brexit is likely to lead to more trade restrictions between the UK and other countries in Europe. Russia has banned cheese imports from the European Unioniv and China has banned food imports from Australiav. Trade protectionism regulations such as India restricting the US chicken imports is also expected restrain the growth of the market in the forecast period. vi
Convenience, Mom And Pop Stores Market Trends
Major trends shaping the convenience, mom and pop stores market include the following –
Offering Fresh, Food-To-Go And Evening Meal Options
Convenience, mom and pop stores are increasingly offering fresh, food-to-go and evening meal options to entice customers and to increase their revenues. To meet the changing consumer preference and to be more convenient for customers, convenience stores are increasingly providing their customers more food options. According to a study by Data essential in 2018, 36% of consumers frequently buy prepared foods when they visit c-stores, and 35% do so occasionally. Companies such as 7-Eleven, known for its slurpees and hotdogs, recently started selling locally made items in select markets, including chipotle chicken bowls, chicken parmesan and macaroni and cheese, to serve a more diverse set of consumers and thus increase their revenues.
Increasing Brand Partnerships
Convenience, mom and pop stores are increasingly entering into agreements with brands such as Starbucks and Krispy Kreme for mutual benefits. To increase their brand awareness big brand manufacturers such as Starbucks, Krispy Kreme and Costa Coffees increasingly allow small convenience stores to sell their products. The convenience stores get more sales on these products as they are well known. In 2016, Krispy Kreme Doughnuts had announced a partnership with TSW Foods LLC, a convenience store chain in the US to bring Krispy Kreme brand packaged sweet treats such as snack bags, honey buns and single-serve pies to convenience stores across the United States.viii Dunkin Doughnuts has also collaborated with chains such as Price Chopper, to increase their brand awareness.
Opportunities And Recommendations In The Convenience, Mom And Pop Stores Market
Opportunities – The top opportunities in the convenience, mom and pop stores market segmented by type will arise in the convenience stores market segment, which will gain $129.8 billion of global annual sales by 2023. The top opportunities in the convenience, mom and pop stores market segmented by ownership will arise in the independent retailer segment, which will gain $137.7 billion of global annual sales by 2023. The convenience stores market size will gain the most in the India at $57.96 billion.
Market-trend-based strategies for convenience, mom and pop stores market include focusing on the collaboration with e commerce players, increasing brand partnerships, offering fresh food and food -to- go and developing smart shelves. Player-adopted strategies in the convenience, mom and pop stores market include strategic mergers and acquisitions to increase geographic presence.
Recommendations – To take advantage of the opportunities, the business research company recommends the convenience, mom and pop stores companies to adopt new technologies, focus on providing more go food options, establish operations in emerging markets, have a well-established distribution channel design, offer competitive pricing, focus on Omni-channel approach, in personal selling, offer discount coupons or redemption cards, focus on millennials and focus on target audiences.
Convenience, Mom And Pop Stores Market Segmentation
The convenience, mom and pop stores market is segmented by type, ownership and by geography.
The convenience stores market was the largest segment of the convenience, mom and pop stores market, and accounting for $515.1 billion or 53.6% share of the total market in 2019. It is also expected to be the fastest-growing segment going forward at a CAGR of 5.8%.
- a. Convenience Stores
- b. Mom And Pop Stores
The independent retail segment was the largest segment of the convenience, mom and pop stores market by ownership, accounting for $552.1 billion or 57.5% of the total market in 2019. The retail chain market is expected to be the fastest-growing segment going forward at a CAGR of 6.2%.
- a. Retail Chain
- b. Independent Stores
The convenience, mom and pop stores market is segmented into
Asia-Pacific was the largest region in the convenience, mom and pop stores market, accounting for 52.1% of the global market in 2019. It was followed by Africa, Middle East and the other regions. Going forward, the fastest growing regions in the convenience, mom and pop stores market will be Middles East and Asia-Pacific, where growth will be at CAGRs of 7.5% and 6.5% respectively from 2019-2023.
- o North America
- o Western Europe
- o Asia Pacific
- Hong Kong
- New Zealand
- South Korea
- o Eastern Europe
- Czech Republic
- o South America
- o Middle East
- Saudi Arabia
- o Africa
- South Africa
Convenience, Mom And Pop Stores Competitive Landscape
Major Competitors are:
Other Competitors Include:
- · Seven & I Holdings Co., Ltd.
- · Auchan Holding SA’s
- · Carrefour SA’s
- · Alimentation Couche-Tard Inc.’s
- · FamilyMart Co., Ltd.’s
- • Wawa Inc.
- • Love`s Travel Stops & Country Stores
- • Casey’s General Stores, Inc
- • Kwik Trip Inc.
- • EG Group
- • Bianlifeng
- • Suning Xiaodian
- • Tesco
- • Musgrave
- • Sainsbury`s
- • Co-operative Group Limited
- • McColl`s
- • Groupe Casino
- • Profi
- • Stokrotka Sp. z o.o.
- • Auchan
- • Perekrestok Express
- • Magnit
- • Zabka
- • Spolem
- • Groszek
- • Eurocash
- • 7-Eleven
- • Yesway
- • Alimentation Couche-Tard
- • Casey`s general stores
- • Marathon Petroleum Corporation
- • Arrefour
- • Raízen Conveniências
- • Cencosud
- • Cia Brasileira de Distribuicao (GPA)
- • Savola
- • Almeera Group
- • Al Madina Group
- • Lulu
- • Circle K
- • FreshStop
- • Food Lover’s Market
- • Pick n Pay
- • SPAR
- • Shoprite
- • OK
- • Freshzo Foods