Mercer Capital’s Convenience Store Industry newsletter is a quarterly publication. Each issue includes a segment focus (convenience stores, grocery stores, fast food (QSR), and travel centers). Also included in every issue is a market overview, a review of recent M&A activity, and more.
The segment focus of the most recent issue is Grocery Stores.
This industry has grown over the past five years, benefitting from a strengthening economy and the trend toward organic and all-natural brands. However, the industry is mature, and revenue is expected to grow at a rate below national GDP over the next five years (1.5%, annualized). The top four operators account for roughly 30% of industry revenue. Competition from superstores and warehouse clubs intensified during the recent recession, and remains high. As shown below, other sector operators enjoy modestly lower costs than grocery store retailers.
To read the entire write up, download the newsletter (pdf) here.