How do I check a convenience store’s neighbourhood competition from nearby chains?
Walk the neighbourhood at different hours and list every store that sells what this one sells, noting hours, prices and what draws people in. Then ask how sales moved when a competitor last opened. Check for planned openings and for what the store offers that a chain cannot.
Spend time around the store, not just inside it. Visit in the morning rush, mid-afternoon and late evening, and note who is competing for each. A chain with long hours may take late customers, while a nearby gas station may take quick stops. Compare prices on a handful of common items, and notice what each rival does well.
Then ask the owner what happened when competition last arrived. Did sales dip, and did they recover? Ask for the sales trend around that time and what the owner changed in response. A store that kept its regulars has something the chain does not, and that deserves to be named clearly.
Finally, look ahead. Talk to neighbours and nearby business owners about planned openings, new buildings or traffic changes. Ask what services the store provides that chains rarely match, such as credit for regulars, special orders or local products. Think hard about whether you can offer those yourself, since you will be competing the day you take over. Count the foot traffic yourself for a few hours, and compare it with the transaction counts the owner reports. Do it on a weekday and a weekend.
Key takeaways
- Scout the area at several hours and compare hours, prices and draw.
- Ask how sales moved when a competitor last opened.
- Identify what regulars value here that a chain does not offer.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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