Convenience Stores Introduction:Convenience Stores is a small store that stocks a range of everyday items such as groceries, toiletries, alcoholic

and soft drinks, tobacco products, cosmetic product and newspapers. Convenience stores are usually more expensive than regular supermarkets, which they make up for with greater convenience by existing at more locations and having shorter cashier lines. A convenience store may be part of a gas/petrol station . They may be located alongside busy roads, in urban areas, or near railway stations or other transportation hubs. In some countries, convenience stores have long shopping hours, some being open 24 hours. Convenience stores are usually more expensive than regular supermarkets, which they make up for with greater convenience by existing at more locations and having shorter cashier line.

 Convenience stores offer speed of service to time-starved consumers who want to get in and out of the store quickly. These shoppers recognize this channel of trade for its convenient locations, extended hours of operation, one-stop shopping, grab-and-go foodservice, variety of merchandise and fast transactions.

The average convenience store is 2,744 square feet. New stores are bigger, with 3,590 square feet, with about 2,582 square feet of sales area and about 1,900 square feet of non-sales area.

Convenience stores recognizing the importance of creating destinations within the store that require additional space whether coffee islands, foodservice areas with seating or financial services kiosks. Convenience stores also have expanded their offerings over the last few years, with stores become part supermarket, restaurant, gas station and even a bank or drug store.

The convenience store industry is America's primary source for fuel.

Convenience stores sell an estimated 80 percent of the gasoline purchased in the United States.

Of the 144,875 convenience stores in the United States, 80 percent (120,950 stores) sell gas. Convenience stores have an unmatched speed of transaction: The average time it takes a customer to walk in, purchase an item and depart is between 3 to 4 minutes.

35 seconds to walk from the car to the store

71 seconds to select item(s) 42 seconds to wait in line to pay 21 seconds to pay 44 seconds to leave store

Types of convenience stores:-

There are three types of parameter to measure convenience stores:-

Size Price Product

800-2000 square feet Discounted, MRP rate Cosmetic, imported product , grocery item

Types of convenience stores:-

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In the US, some fast food chains offer a counter in convenience stores. Instead of cooking food in the store, these counters offer a limited menu of items delivered several times a day from a local branch of the restaurant. Convenience stores may be combined with other services, such as a train station ticket counter, post office counter or a petrol pumps.

Indian scenario of convenience stores

The Convenience Stores scenario is one of the fastest growing industries in India over the last couple of years. Retail sector comprises of organized retail and unorganized retail sector. Traditionally the retail market in India was largely unorganized; however with changing consumer preferences, organized retail is gradually becoming popular More than 90% of retailing in India fall into the unorganized mom & pop sector, the organized sector is largely concentrated in big cities.

Indian scenario of convenience stores

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Organized retail in India is expected to grow 25-30 per cent yearly. Retailing is one of the pillars of the economy in India and accounts for 15-16% of GDP. Over 12 million outlets operate in the country and only 4% of them being larger than 500 sq ft (46 m2) in size. Most Indian shopping takes place in open markets and millions of independent grocery shops called kirana.

Retail Formats in India

Malls:
The largest form of organized retailing today. Located mainly in metro cities , in proximity to urban outskirts. Ranges from 60,000 sq ft to 7,00,000 sq ft and above. They lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under a common roof.
Example include shoppers Stop, Piramyd , Pantaloon.

Retail Formats in India

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Specialty stores: Chain such as the Bangalore based Kid Kemp, Mumbai book retailer Crossword, RPCs Music World and the Times Groups music chain Planet M, are focusing on specific Market segments and Have established themselves strongly in their sectors. Example: Reliance Footprint, Food bazar, Haldiram bhujiwala

Retail Formats in India

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Discount Stores: As the name suggests , discount stores or factory outlets, offer discounts on the MRP through selling in bulk reaching economics of scale or excess stock left over at the season. The product category can range from a variety of perishable / non perishable goods.

Retail Formats in India

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Department stores: Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs. Further classified into localized departments such as clothing, toys, home groceries etc..

Departmental Stores are expected to take over the apparel business from exclusive brand showrooms. Among these, the biggest success is K Rahejas Shoppers Stop, which started in Mumbai and now has more than seven large stores (over 30,000 sq. ft) across India and even has its own in store brand for clothes called stop! Example: Westside" and "Lifestyle"-popular

Retail Formats in India

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Hyper marts / supermarkets: Large self service outlets, catering to varied shopper needs are termed as supermarkets . These are located in or near residential high streets. These stores today contribute to 30% of all food & grocery organized retail sales .Super markets can further be classified in to mini supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and personal sales.

Retail Formats in India

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Convenience Stores:

these are relatively small stores 500-2,000 sq. ft located near residential areas. They stock a limited range of high-turnover convenience products and are usually open for extended periods during the day, seven days a week. Prices are slightly higher due to the convenience premium.
Example: Twenty Four seven ,Reliance fresh, easyday

Need for the format of convenience stores :-

Traditional format convenience stores:-

kiranas: traditional mom and pop stores

Street Markets in traditional format convenience store are limited product, no choice for customer , service are not good. Modern format of convenience stores :Twenty Four seven Convenience stores Reliance fresh Easy day

Modern format of convenience stores huge range of product, choice for customer, good service, ready to eat counter. Twenty Four seven Convenience stores are round-the-clock convenience store format. Organized retail provides brands much needed visibility and platform for customer interaction. Increased use of credit cards is in favor of convenience stores. It creates requirement even when it is not necessary. In convenience stores put stress on a proper infrastructure like well maintained building, air conditioning, trained employees, electronic machine, parking facilities and proper display of goods category wise.

Twenty Four Seven Convenience Store

About Twenty Four Seven Convenience Store Chain of development store in India

Outlet

18 outlets Located in India(Delhi)

K. K. Modi Group K. K. Modi 2005 Samir Modi

Parent group Owner Founded Executive Director

Head quarter

49, Community Centre, Friends Colony New Delhi - 110025

Retail http://www.modi.com/about-24x7.html

Industry website

Twenty Four seven Convenience stores Introduction:The Twenty Four Seven Convenience Stores are one of Indias premiere and New Delhis only organized retail chain in the roundthe-clock convenience store format. The store chain offers its customers an international shopping experience; offering variety of products and services. These stores provide a means to the young working populous with new and more comfortable options that meet their requirement and also those of the modern Indian culture. Twenty Four Seven Retail Stores that are open 24 hours, 7 days a week in 2005 Twenty Four Seven Stores offer Indian consumer a complete international shopping experience with a wide range of products from ready-to-eat food, beverages, groceries provisions, pharmacy to various convenient services from Bill Payment, International & Domestic Courier, Online Movie Tickets and lots more round the clock.

Product And Services The Twenty Four Seven Stores are designed to cater to customers who are constantly on the move offering a wide range of services and over 2500 products on offer, such as.. Groceries Dairy products Snacks, Chips and Chocolate Mini Pharmacy Cosmetics Music, Movies and Magazines Movie tickets Bill payments and Mobile recharge Courier service Tobacco and related products Confectionary Office stationary Event ticketing and passes

Service Quality Model - RATER

Reliability Assurance Tangibility

Empathy
Responsiveness

Reliability Major factor in Service Differentiation Efforts for delivering best service encounter experience Assurance

Ensure best prices Ensure best quality Ensures best purchase experiences

Ensures best store interactions

Ensures best ambience

Tangibility Packing's bearings Brand Logo Souvenirs Gift Vouchers through third parties Free Samples, Gifts etc. Bill Slips Pamphlets, Brochures etc.

Empathy
Price tags Ensuring In-Shop Customer Assistance

Well trained employees

Performance as Promised Customer Privacy Value Customer Relations

Responsiveness

Willful Helping and Courtesy Personal Attention to Customers

No Grumbling Policy of More Retail

Employee Discipline On-time Customer Redressal

Role of Customers to improve the Quality of Service Delivery Responsibility of Customers to give proper feedback Customer must demand for what is being promised Customer must understand the differentiations and should respond

Role of Employees to improve the Quality of Service Delivery

Employee is the Maker or Breaker Interpersonal Skills much important Personalized Business Service Encounters must be made memorable Must aim Customer Loyalty

USPs of Twenty Four seven Convenience stores

Open 24/7 with ready to eat counter.

Competition

Aditya Birla Group

SWOT of TFSCS
Strengths: 24 hour convenience outlets with strong brand name.
Computerized information system Offers fresh , high quality food Localized assortment to familiarize the preference of communities

Weaknesses: Not a first choice of convenient store for shoppers. Limited variety of assortment Less promotion

Opportunities:
High demand of fresh and organic foods Increase share of various kind of meals

Open for any promotion

Threats
Keep check of food adulteration Fill rate should be above 90% Very strong sourcing and should be in line as per consumption or sale of the store Create interest/ integrity / Loyalty

Challenges:-

Optimizes Labor Usage Achieve True Customer Loyalty Create Central Demand Forecasting for Optimization of sourced items New Product Introduction Increase Operational Efficiency

Scope of improvements:-

Optimizes Labor Usage- work schedule Achieve True Customer Loyalty- Feedback Very strong sourcing of merchandise and should be in line as per consumption or sale of the store New Product Introduce by the promotion (Twenty Four seven Convenience stores are open 24hours situated in Delhi / NCR. In my opinion radio is the best option for promotion as they match our working hour.)

Conclusion: Consumer Focused promotion Young executives who work till late evenings can be the main customer at Twenty Four seven Convenience stores. Ready to eat counter, hygienic food, fresh fruits , and imported products should be of greater range. Twenty Four seven Convenience stores targets higher and upper middle class customer Twenty four seven specifically targets working women and home makers who are the primary decision makers.