Royal Dutch Shell - Competitors

Royal Dutch Shell Competition

Now Viewing Royal Dutch Shell's competition in: Convenience Stores

Recent Developments

Commissioner Petitions FDA on Access to "Safe Nicotine" - New York's health commissioner petitioned the FDA to relax regulations on the sale of nicotine replacement therapy (NRT), including patches, gum, and lozenges. C-stores, which derive 10 to 25 percent of revenue from tobacco sales, are prohibited from selling NRT. The petition asks the FDA to allow NRT to be sold at all retailers where cigarettes are sold, like c-stores and gas stations. The FDA responded in August 2008, saying it needs more time to study the issue.

7-Eleven Offers Hot Food - C-store chain 7-Eleven is expanding its baked in-store hot foods program, upping the ante with c-store competitors. The company launched a hot foods pilot in early 2008 in about 100 southeast Virginia stores. Based on the program's success, 7-Eleven plans to roll out the food items, including pizza, beef patties, and chicken wings, in about 800 stores by year-end 2008, and all 6,200 locations within the next two years. 7-Eleven estimates that these food offerings will account for roughly 40 percent of its annual foodservice sales.

Competition for Gas Sales Increasing - C-stores are seeing heightened competition for gas sales from warehouse clubs, supercenters, and supermarkets, according to market research firm TNS Retail Forward. These alternative fuel retailers capture an estimated 13 percent of US gas sales, which TNS Retail Forward projects will increase to 17 percent by 2012. TNS concludes that continued high fuel prices make alternative players' cents-off promotions extremely attractive. C-stores must reduce reliance on gas, says TNS, and focus efforts inside stores, with new products, expanded services, and innovative marketing.

Competitive Landscape

Consumer and commercial driving trends drive demand. The profitability of individual stores depends on competitive pricing, effective merchandising, and the ability to secure high-traffic locations. Large companies have advantages in purchasing and finance. Small companies can compete effectively by acquiring superior locations or offering specialized merchandise or services. Average annual revenue per worker is about $500,000 for gas station/c-store combinations and $150,000 for c-stores without gas.

Full Industry Overview For Convenience Stores

Convenience Stores Industry Forecast

from Hoover's/D&B subsidiary First Research

US personal consumption expenditures of food, nonalcoholic beverages, and tobacco, all major indicators for c-stores, are forecast to grow at an annual compounded rate of 1.6 percent between 2007 and 2012.

Growth in Consumer Spending of Convenience Products Weak

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.