What you need to know

The growth of convenience stores has been boosted by rising urbanization and emerging new lifestyles. Despite a slowdown in China’s economic growth, the convenience store sector is still expected to see vibrant growth, a result of Chinese consumers’ continuous pursuit of time efficiency, availability, and instant fulfilment. In addition, with companies tapping into e-commerce platforms and advanced new technology and equipment (such as smart shelves and store heat maps), more innovative small retail formats will continue appearing on the Chinese market. Convenience stores are also trying to utilise customer data and local demographic data to provide better services and customised products in local areas. Premium convenience stores are transforming into recreational shopping spaces by providing seating areas and more read-to-eat food and freshly made drinks.

Covered in this report

According to the National Standard Retail Business Category (零售业态分类) (GB/T18106-2004), convenience stores (CVS) are defined as a small-store grocery-focused retail format which offers convenience services for people needing to undertake top-up shopping or make distress purchases. The sector has also become increasingly prominent in consumers’ last-minute meal shopping.

In practice, convenience stores should:

  • Be open seven days a week and have 16-24 hours of operational store opening times;

  • Sell an extended range of goods including a range of known-value items such as food, drinks, basic household groceries and newspapers;

  • Provide a range of services, including, but not limited to, mobile phone top-up, utility bills payment, credit card repayment, and parcel delivery;

  • Serve a local community within easy reach by foot or by bicycle;

  • Usually trade from a unit around 100 sq. metres in size.

Excluded

The following are not covered in this Report:

  • Hole-in-the-wall stores

  • Independent mom-and-pop grocery stores

  • Petrol station convenience stores

  • Rural convenience stores

Definitions

For this Report, consumers are classified into three groups based on their consumption frequency in convenience stores:

  • Heavy c-store shoppers: shopping at convenience stores once a day or more

  • Average c-store shoppers: shopping at convenience stores several times a week

  • Light c-store shoppers: shopping at convenience stores once a week, two to three times a month and once a month or less

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