How do I check a convenience store’s product mix before buying?

A convenience store is a collection of categories, each behaving differently. Ask for sales by category over a long period, and have your accountant work out what each contributes after cost. Some categories bring customers in but earn little. Others sit quietly and earn a lot. Knowing the difference tells you where your attention should go. Walk the aisles at different times of day. Look for dusty stock, short-dated items, empty gaps and rows of slow movers. Ask how often orders are placed and how the seller decides what to carry. Check whether prices on the shelf match the system.

Pay attention to categories that depend on a licence or special permission to sell, or on a supplier’s approval. Ask your lawyer and the relevant authority what would apply to you as a new owner, because these items can be a large part of sales. Finally, ask which products customers ask for that the store does not carry, and whether the seller has ideas for the mix. Take notes on each visit and compare them with the category figures later.

Key takeaways

• Request category sales and margins over a long period.
• Walk the shelves for old stock and slow movers.
• Ask which categories depend on special permission to sell.
• Ask what customers request that the store does not stock.