Analysis in this study is based on the point-of-sales (POS) data supplied by one of the largest conve-nience store chains. Data from 99 stores around the Tokyo metropolitan area were available for this study: the chain operates several hundred stores in the same area. Classification of store types is pro-posed through analysis of diversity in the pattern of sales by commodity group. Based on the pro-posed store types, a systematic interpretation is given for the correlation between diversity in the pat-tern of sales and that in store locations.
The result of factor analysis by commodity group suggests five factors to explain the sales pat-terns of convenience stores:
1) non-neighbor customer factor, indicating purchases by non-neighbors;
2) confectionery and soft drink factor;
3) replacement factor, indicating articles usually purchased at supermarkets, etc.;
4) household article factor; and
5) alcoholic beverage factor.
According to the result of cluster analysis on each factor loading, stores are classified into the follow-ing seven types
1) Multipurpose neighborhood convenience stores are located in high-rise housing development dis-tricts with numerous residents and few (or no) competitive retailers in their trade areas.
2) “Liquor shop” convenience stores are those with a license to sell liquor, attracting customers from considerably larger areas, especially at night.
3) Convenience stores in business districts sell sundries to cover various immediate needs, includ-ing lunches and snacks sold intensively in the daytime.
4) “Replacement” convenience stores are general store-like convenience stores with few competi-tors in the neighborhood, which sell high-priced articles usually purchased at supermarkets, etc. at lower prices.
5) Roadside convenience stores are those facing highways, with smaller sales in household articles.
6) Convenience stores with combined type 3) and 4) functions are located in areas with business offices and condominiums, adjacent to central business districts, where the basic function of the
stores changes during the daytime and nighttime, selling different articles at different times of the day.
7) Convenience stores for younger people are located near railway stations or schools, selling arti-cles mostly to the younger generation.
Convenience stores, with their advantage of one-stop shopping, are believed to acquire part of the potential sales of supermarkets and other competitors. This assertion has been proved through the analysis of POS data. This aspect of the functions of convenience stores basically reflects retailers' competition in local markets. It is noteworthy, however, that younger customers show a different pattern of store choice behavior from older ones. It is also notable that some convenience stores exhibit a clear-cut change in sales patterns by day and night, meeting the needs of office workers or college students in the daytime and the replacement needs of local residents at night.
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