Summary of Key Points
The convenience store industry may seem "prosperous" – with the number of stores increasing from 98,000 in 2016 to 208,000 in 2025 and sales exceeding 400 billion yuan – but it actually suffers from serious internal problems: customer footfall per store has dropped by 8.7%, and daily revenue per store has decreased by 13% over four years, leading many franchisees to consider exiting the industry. Once a sought-after "last-mile" service by investors, the convenience store sector is now facing competition from new players such as delivery services, snack discount stores, and instant retail platforms. The industry is shifting from a focus on expansion to more intensive management, exploring new opportunities through fresh food offerings, a dining-oriented approach, and cross-industry partnerships, all with the aim of returning to its core mission of "eliminating inconvenience."
1. Expansion on Paper, but Losses per Store
The convenience store industry's apparent growth is deceptive: although the total number of stores has doubled, not every store is doing well. In 2025, customer footfall at sample companies decreased by nearly 9%, and daily revenue per store dropped to just 4,453 yuan, a 13% reduction from four years ago. The stories of franchisees are particularly heartbreaking: some quit their 996-hour jobs to join the industry only to end up in losses and return to traditional employment; others invest millions to open multiple stores, yet their monthly profits are less than the interest on bank deposits. Those who want to close their stores face significant financial losses due to deposit requirements and uninterested buyers for their assets, forcing them to wait until the five-year franchise period expires to get their money back.
Even Taiyuan, once known as the "capital of convenience stores," has seen a change in landscape, with more pharmacies and snack discount stores emerging at the expense of convenience stores. The situation in Beijing is even worse, with young consumers losing interest in these establishments, which they once viewed as convenient urban amenities but now find too expensive.
2. Who Is Taking Away Convenience Store Business?
The core value of convenience stores is providing convenience, but now other services are offering it more affordably and efficiently:
- Delivery and Prepared Drinks: Delivery services cover a range of up to 3 kilometers, making them more convenient than convenience store lunches. With tens of thousands of prepared drink shops competing at fixed prices (e.g., 9.9 yuan), convenience stores' coffee and beverages are becoming less attractive.
- Snack Discount Stores: 38,000 discount stores occupy prime locations, offering a wider range of snacks at lower prices, taking business away from conventional convenience stores.
- Instant Retail: Platforms like Lightning Warehouse provide a more comprehensive and cost-effective option for emergency purchases (e.g., buying medicine in the middle of the night), potentially eroding the need to visit convenience stores.
The overall economic downturn has also made consumers more discerning: the extra cost associated with convenience stores (e.g., a one-yuan premium for water compared to supermarkets) is no longer acceptable.
3. From Expansion to Intensive Management
Capital was once eager to invest in convenience stores; companies like JD.com promised millions of new stores, and chains like Lawson experienced long queues when entering new markets. However, the industry has realized that scale can be a curse. Many all-day convenience stores have failed due to the "10,000 stores within five years" targets, and even brands like Convenience Bee have abandoned this goal. Leading brands are slowing down their expansion plans: Lawson has pushed its 10,000-store target to 2031, while Meiyijia has stated it will no longer focus on scale. Instead, they are focusing on increasing the profitability of individual stores. For example, New Jiayi is closing some stores and investing in cold chain logistics and fresh food production to boost daily sales above 8,000 yuan, achieving year-on-year growth for three consecutive years. In other words, the focus has shifted from simply expanding the network to improving store performance.
4. Convenience Stores' Self-Restoration: Fresh Food, Dining-Oriented Services, and Cross-Industry Partnerships
To survive, convenience stores need to offer unique services that others cannot:
- Fresh Food: 83% of consumers have purchased products from convenience store brands, with 45% buying fresh food. Brands like Lawson develop their own fresh food products (40%-50% of their catalog), while most competitors merely imitate them, leading to increased homogenization.
- Dining-Oriented Services: Stores like 7-ELEVEn are opening "mini-restaurants" with freshly prepared meals that online services cannot match in terms of authenticity and experience. Others, like FamilyMart, offer a full range of meals throughout the day, encouraging customers to stay longer.
- Cross-Industry Partnerships: Convenience stores are collaborating with other businesses to share logistics or offer jointly developed products, such as cooked dishes, to meet consumers' immediate needs.
5. The Future: Back to the Essence of "Eliminating Inconvenience"
Shinzo Suzuki, the founder of 7-ELEVEn, once said, "The real competitor is not another convenience store but the changing needs of customers." The golden age of convenience stores has passed; what matters now is providing innovative solutions. Future convenience stores should act as "solution centers" that address everyday challenges. For example, they might offer freshly grilled food for late-night workers or help with printing documents. As long as they can solve real problems for consumers, they will remain indispensable. After all, canned pineapples may expire, but the need to eliminate inconvenience is endless.
This analysis clearly highlights the industry's challenges and opportunities, emphasizing the need for convenience stores to shift from focusing on quantity to quality, and from selling products to providing valuable services and experiences. Only by doing so can they thrive in the long term.