BEIJNG: The convenience store sector in China recorded higher revenues and continued store number expansions in 2024, while making efforts to continue to optimise product category structures, according to an industry survey.
The survey, the Development of Convenience Stores in 2024 – released on Jan 21 by the China Chain Store and Franchise Association – covered 60 convenience store chains nationwide, representing about 124,000 stores.
Sales growth in the sector was seen by 70% of surveyed enterprises, versus 81.4% in 2023 and 64.1% in 2022.
Expansion remained a key trend, with 80% of operators opening new locations last year.
A total of 14,550 new stores were launched, with larger operators driving growth.
Chains with over 1,000 stores accounted for 8,510 of the 9,570 net new stores, representing 89% of the total net increase.
Profitability improved for some enterprises.
Of 27 surveyed companies reporting profit growth in 2024, 85% saw year-on-year increases in total sales, while 56% recorded growth in comparable store sales.
The report highlighted a strong correlation between sales, profits and daily sales at comparable stores, indicating that success in one area often boosted overall performance.
Customer visit numbers were also critical to store success.
Among companies with a year-on-year increase in visitors, 62% saw higher comparable store sales, and 86% reported total sales growth.
In contrast, businesses with fewer visitors struggled, with 65% experiencing lower comparable store sales and 42% reporting a decline in total sales.
While challenges persist, the sector continues to focus on optimising product offerings and improving operating capabilities to drive long-term growth, said the report.
Convenience store chains in China, including major names Meiyijia and Tianfu, are ramping up expansion efforts.
Meiyijia, for instance, had grown its nationwide store count to 35,000 by April 2024, adding nearly 300 new stores per month on average.
Shanghai UI Sharing Consulting founder Hu Chuncai told 21st Century Business Herald that convenience stores primarily serve consumers’ immediate needs.
To remain competitive, domestic players must focus on product differentiation and unique offerings.
“Stores must give customers a reason to visit and make purchases. Long operating hours are key to our success,” Hu said.
He noted that in northern regions, particularly during winter, foot traffic declines sharply as residents stay indoors for extended periods.
“In the northeast, this can last for months, affecting both daytime and nighttime business. In such cases, extended store hours become crucial.” — China Daily/ANN
