Convenience stores profitability rebounds as foot traffic increases
Convenience stores' sales and general business operations rebounded in 2023, with profitability and foot traffic showing steady recovery, a recent industry survey shows.
Over 80 percent of convenience store operators reported a total revenue increase in the past year, compared with only 64 percent in 2022, and most suggested an optimistic outlook in the coming year with new expansion initiatives being considered.
Their overall profitability also improved with 52.5 percent growth of profit achieved year on year, according to the China Chain Store & Franchise Association's latest survey of 59 domestic convenience store chain operators, covering more than 110,000 shops.
A total of 61 percent of chain operators reported comparable store sales increase, higher from that of 50 percent a year ago.
The past year also saw over 13,000 new openings and the closure of 4,076 convenience stores across the country.
Over 55 percent of convenience stores saw an increase in foot traffic, jumping from only 21.9 percent in 2022.
Business prospects also took a brighter turn and sentiment with as many as 71 percent of chain operators planning to either expand in their existing regions or seek expansion opportunities in regions they have yet to cover.
By the end of 2022, China had around 300,000 convenience stores with their penetration rate continuing to climb, and around 63 percent were owned by chain store operators.
Respondents of the survey stated their priorities this year included digitalization transformation, expansion of online business, and the launch of new store formats.
