Reasons for Foreign Ownership of Convenience Stores
As the US highways system was put in place and expanded, the need for convenience stores grew with it. There are close to 155,000 convenience stores across the US.
Third, many visas for foreigners require either a job or investment in the economy. Owning a store may satisfy visa requirements for some people, while providing income to stay.
Leaving one’s country is a big decision. First-generation immigrants are risk-takers with ambition. A study would show more inner city convenience stores have immigrant owners than suburbs.
Same with Indian people and grocery stores, middle eastern immigrants and convenience stores. They share the model within culture and succeed.
Evolution and Digitization of Convenience Stores
All stores evolved and went digital, like Tesco Express and 7Eleven apps. Technology enables industry best margins, fast delivery, seamless experience.
Products Sold in Convenience Stores
A convenience store stocks everyday items, from snacks to tobacco. In the US, often at fuel stations along busy roads. Referred to as corner or party stores. In 2011, $195 billion in sales. When combined with fuel, 5% of GDP. The first opened in Dallas.
Ownership Trends in Convenience Stores
Now most independent convenience stores are run by Asians accustomed to higher temperatures and humidity. I submit stores are warmer today due to tastes of such owners.
Top Categories of Items Sold in Convenience Stores
What do convenience stores sell most of? The top four categories of items sold in convenience stores are:
- Beverages
- Tobacco products
- Prepared food
- Candy and other sweets
Profitability and Growth of Convenience Stores
Generally, convenience stores are profitable, with average gross profit margins upwards of $450,000. Profitable ventures may result in an opportunity to open other locations within a city or area, increasing potential profits.
Retailers are reducing shop space and opening city-format stores with area less than 5 thousand square meters. Convenience stores are perhaps the fastest-growing format in 2021. Needless to say, convenience stores are convenient for when you need something quickly and at all hours. Stores are usually open from 7 a.m. to 11 p.m., with some open 24 hours.
Reasons for Indian Ownership of Convenience Stores
Why are so many convenience stores owned by Indians?
Third, many visas for foreigners require either a job or investment in the economy. Owning a store may satisfy visa requirements for some people, while providing them with an ongoing income to stay in the country.
The reason involves the nature of incentives and opportunity costs in competitive industries. Such a study would likely show that proportionally more convenience stores in the inner city have first-generation immigrant owners than in the suburbs. Leaving one’s native country is a big decision. Consequently, first-generation immigrants are self-selected to be risk-takers with above-average ambition.