Novice open convenience stores, store location strategy tips

Dec 02 , 2021

Nowadays, there are countless convenience stores on the street, and people’s demand for convenience stores is increasing. Therefore, opening a convenience store is a good choice for entrepreneurs. As the number of convenience stores continues to increase, competition is also increasing. Relatively increasing, the products and methods of convenience stores are generally similar. Therefore, if entrepreneurs want to become the final winners, they must work harder on location selection.

Shelf pusher system

Six principles to avoid in site selection:

1. The flow of people at the crossroads will inevitably affect the business conditions of the convenience store. For example, a store at the corner of the crossroad has four directions (the four directions of movement of east, west, south, and north). If you have a lot of people, you won’t be too worried about not having a business. There will be a lot of shops at crossroads. With the traffic of people, you will spend more time on store decoration. It is best to attract people at a glance.

2. There is very little traffic in the business district. Convenience stores are not suitable to be opened in places where there is insufficient migrant population in the business district. If the number of migrants in the business district is less than 1,500 per day, then this store should be abandoned (this means that the store is fixed There are too few customers, which will affect sales).

3. No shops can be seen on the road. Some convenience stores are not located along the side of the road, but far away from the road. This makes it inconvenient for customers to buy goods and it is difficult to take care of the side of the road. Of mobile customers.

4. The hidden location of underground stores. Convenience stores can be seen from the name and their main feature is convenience. Therefore, if the convenience store does not give full play to the special functions of the convenience store, it will inevitably affect the passenger flow. The convenience store itself is not underground. It's too convenient, and if the location is still secret, it will be difficult to attract mobile customers.

5. Irregular shape of the location of the store. The shape of the location of the convenience store is also very important. A convenience store with a rectangular or square shape is easier to be recognized. If the shape is irregular, the original business area is very large. It is difficult to reasonably arrange the display of goods in a small space, which will increase the time for customers to purchase goods.

6. Not at the station "return to moving line" The so-called "return to moving line" refers to the moving route where the passenger flow on and off the train must pass through the entrance of the store. If the location of the store is not within this moving route, even if the store is close to the station, it will affect the flow of people who come to buy goods.

Cooler divider

Convenience store with roller shelf freezer

Business district type:

According to the definition of a business district, the place with the highest customer density is the core business district. Based on this, there are currently the following types of business districts: transportation business districts (stations, docks, airports), commercial business districts (various malls), community business districts, office business districts, factory business districts (factory concentration areas), school business districts District, market business district (including night market).

The relationship between convenience stores and business districts

The first layer function of the convenience store is: a store that meets the needs of customers to purchase in time. For this reason, convenience stores were also born for supporting business districts. They are the existence of rigid demand in the consumption of commercial districts and the supporting industries of rigid demand in urban development.

After understanding the business district, the type of business district, and the relationship between the convenience store and the business district, enter the main text: shop location.

spring loaded shelf pushers

Store location-the more people, the better place:

In fact, many domestic cigarettes are based on the limit of cigarette competition in various places as the bottom line. Without a tobacco license, it is difficult to open a convenient store. Even if it is foreign capital, it must appear in the form of cooperative sales. Most domestic chain tobacco accounts for 30-50% of the sales of retail stores. If it is difficult to apply for a tobacco license at the location, it is not recommended.

Basis 1: Passenger flow quantity & passenger flow quality:

If you need data analysis and data guidance, the service radius of the convenience store’s business district is 500 meters, and the per capita GDP is 3,000 US dollars (in 2016, the national average has exceeded 8,000 US dollars per capita GDP).

According to the "China City Convenience Store Index" report by the China Chain Store & Franchise Association the year before, the average number of people owning one convenience store per 3000 people is that the purchasing power of the business district must be able to meet this standard. However, most people in Guangdong use 6000 people. Site selection threshold. As for the frequently used index of "in-store rate", after all, it is too unstable, so it is not recommended.

Basis 2: External environment & competitors:

The good or bad external environment of the store will affect the consumer mood. After all, the main products of the convenience store are food and drink. A good external environment will increase customers’ willingness to consume. (Of course, the harsh consumer environment also has this Function).

In terms of competitors, filtering low-level competitors can be achieved through the selection of shop rental locations and the product system and service content of the business (a friend from a chain company has said that shops with a shop rent of less than 10,000 are not rented to filter individual couples and wives. Store competition); in the face of high-level competitors, relying on the irreplaceability of the store location to check and balance (not necessarily the wolf will run), many locations in the business district are irreplaceable, these locations are convenience needs的 just needed.

Basis 3: There are risks and future opportunities:

Risks such as urban construction renovation, unclear property rights, transfer of business circles, etc.; future opportunities include future increase in passenger flow, and improvement in the quality of passenger flow in business districts.

Shop location & business relationship

A. The business district corresponding to the shop location matches the corresponding product structure. This is a combination plan for opening a store that I personally admire very much. In the initial stage, the store expansion is suitable, and the location of the same type of business district is convenient for the standardization of the product structure and the standardization of the display, reducing the pressure of procurement and operation, and allowing the team to get on the professional track faster.

B. The location of the store adopts the strategy of surrounded by business circles and concentrated opening of stores. Such a location plan is conducive to the weighted influence of small brands and new brands in the consumer group in a small area, and it is also conducive to the establishment of the initial distribution system, and at the same time, it can prevent a large number of brands from being forced to implant. For example, the most common is to surround a community, an office building.

C. Priority is given to the location of shops in the business districts close to the headquarters. This approach has an irreplaceable advantage in the supervision of the quality of the initial store. Even many chains set their headquarters in the center of the A-type business district with high-quality store performance. According to my customer experience, many chain headquarters systems were raised through top-notch stores during the period when there was no headquarters profitability.


The location of the convenience store is classified according to importance (the figures are for reference only): 1. Location (not replaceable) 2. Large number of people (6000+ person-times) 3. Shop rental (10000+ yuan).

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