In Germany’s market many types of retailers exist and are part of peoples’ life. Looking at other continents and countries though, there is one type of retail store which is very common there but can hardly be found in Germany, the convenience store. This thesis is about factors for a successful implementation of convenience stores into the German market and its development so far. By writing this thesis the author tried to work on the relevant aspects of implementing and introducing a new store type to the German market. The author of this work looks at legal aspects, possible customers, infrastructural and geographical aspects as well as suitable store management and planning. Analysing given data and information as well as looking at the current and future development declares how to implement convenience stores into the German market. This thesis results in the fact that at this moment in time (January 2018) convenience stores, which are open 24/7, can almost only exist in cooperation with gas stations in Germany, because of legal restrictions by the federal states. Convenience stores in gas stations are most likely to become an established part of the German retail market in the next years. Even though it being new to Germany and its market the likelihood of this retail store type growing fast in Germany is high and more companies are almost certainly going to establish cooperated convenience store businesses in gas stations around the country.
Table of Contents
1 Introduction
2 Basic Terms and Topic Definition
2.1 Convenience Store Definition
2.2 The two Convenience Store Types
2.2.1 The Classic Convenience Stores (C-Stores)
2.2.2 Included Convenience Stores (G-Stores)
3 Relevant Factors for the Successful Implementation of Convenience Stores with focus on Germany
3.1 Primarily External Factors
3.1.1 Population Density
3.1.2 Traffic Density
3.1.3 Opening Hour Laws
3.1.4 Potential C-Store Customers by Demography and Behaviour
3.1.4.1 Customer Demographics
3.1.4.2 Customer Mobility Types and their Behaviour
3.1.5 Competition
3.1.5.1 Direct Competition
3.1.5.2 Indirect Competition
3.2 Primarily Internal Factors
3.2.1 Location
3.2.2 Products
3.2.3 Real Estate
3.2.4 Logistics
3.2.4.1 C-Store Logistics
3.2.4.2 G-Store Logistics
3.2.5 Services
3.2.6 Marketing
3.3 Economical Factors
4 The German Way
4.1 G-Stores – A German Success Story
4.1.1 Historical Development
4.1.2 Market Reaction – Gas Stations filling a Gap
4.1.3 G-Store Partnership ARAL and REWE To Go
4.1.3.1 Conception, Testing Phase and ongoing Realisation
4.1.3.2 Data Analysis
4.2 Future Development
4.2.1 Quantitative Aspects of future Development
4.2.2 Qualitative Aspects of future Development
5 Conclusion
Goal and Research Focus
The primary goal of this bachelor thesis is to investigate the success factors for implementing convenience store concepts within the German retail market, addressing the challenge of why this retail model, common elsewhere, is currently limited in Germany.
- Analysis of external factors (population density, traffic, opening hours) affecting market potential.
- Evaluation of internal factors (location, assortment, logistics, marketing) crucial for operation.
- Examination of the specific role of gas stations as an incubator for convenience retail in Germany.
- Comparative data analysis of visitor frequencies at selected ARAL/REWE To Go locations.
- Prognosis for future development and market expansion of convenience store concepts.
Excerpt from the Book
3.1.5.2 Indirect Competition
Indirect competitors are companies and businesses which are not necessarily close and in the area but have a wide range of selling their products through delivery. Possible customers might find it more convenient to order goods from home and get a direct and fast delivery than going to a convenience store which is close by. Convenience stores must therefore offer services and prices which are competitive against these indirect competitors. An example for such a competitor is “Amazon” with its new service “Amazon Prime Now” that delivers a wide range of products in one hour after ordering directly to the customer’s house.
Summary of Chapters
1 Introduction: This chapter introduces the global popularity of convenience stores and outlines the research motivation regarding their limited presence in Germany.
2 Basic Terms and Topic Definition: This section defines the convenience store concept and distinguishes between classic "C-Stores" and gas-station-based "G-Stores".
3 Relevant Factors for the Successful Implementation of Convenience Stores with focus on Germany: This chapter analyzes external (demographic, traffic, legal) and internal (logistics, marketing) variables influencing store viability.
4 The German Way: This chapter explores the historical development, the role of gas stations in bypassing retail restrictions, and forecasts the growth of partnerships like ARAL and REWE To Go.
5 Conclusion: This chapter summarizes findings, confirming that gas stations are currently the most viable platform for 24/7 convenience retail in Germany under existing legal frameworks.
Keywords
Convenience Store, G-Store, Germany, Retail Management, Success Factors, Gas Station, Market Implementation, Population Density, Traffic Density, Opening Hour Laws, Customer Mobility, Logistics, Marketing, REWE To Go, ARAL
Frequently Asked Questions
What is the core focus of this bachelor thesis?
The thesis examines the specific success factors required to successfully implement and expand convenience store concepts within the unique regulatory and competitive landscape of the German retail market.
Which specific store types are analyzed in the work?
The author distinguishes between classic "C-Stores," typical in North America and Asia, and "G-Stores," which are convenience shops integrated into gas stations in Europe.
What is the central research question?
The work explores how convenience retail concepts can be effectively adapted and implemented in Germany, specifically considering legal, geographical, and infrastructural constraints.
Which methodology is employed?
The study utilizes literature analysis and empirical analysis, including the processing of traffic data, population heatmaps, and visitor frequency data from real-world ARAL/REWE locations.
What is discussed in the main part of the thesis?
The main part covers external factors like population and traffic density, internal business drivers like logistics and marketing, and a detailed analysis of the "German Way" regarding gas station partnerships.
Which keywords best describe this research?
Key terms include Convenience Store, G-Store, Germany, Retail Management, Success Factors, Market Implementation, Gas Station, and Logistics.
Why are gas stations so important for this concept in Germany?
Due to strict federal laws regarding retail opening hours, gas stations are among the few outlets permitted to offer essential goods 24/7, making them the primary vehicle for this concept.
What is the conclusion regarding future growth?
The thesis concludes that there is significant growth potential for G-Stores in Germany, as they successfully fill a market gap for convenience-oriented customers in a market that is not yet fully saturated.
- Quote paper
- Matthias Gumbart (Author), 2018, Relevant Success Factors for the Implementation of Convenience Stores in Germany and their Development in the German Market, Munich, GRIN Verlag, https://www.grin.com/document/416807
