An economic analysis of the convenience retail format in Spain (1998-2004)

Purpose - The purpose of this paper is to offer an economic analysis of the convenience store format and the various categories thereof for the Spanish case in the period 1998-2004. Design/methodology/approach - Using secondary information sources, the analysis methodology is based on economic indicators of the output level and on the calculation of output/input ratios. Findings - The results show a positive evolution of the format regarding both the sales volume and the number of establishments, a high-concentration rate in the sector and a positive trend of the productivity ratios. However, differences are observed between distribution groups or chains, as well as between the various analysed types. Research limitations/implications - The analysis uses secondary data, namely generally accepted apparent economic indicators that cannot reflect the entire reality of the market. The analysed market is the Spanish market. So, more effort of analysis is needed with primary data and it emerges the convenience of that the competent authorities provide more statistical information about the sector. Originality/value - This work provides knowledge about management decisions by retailers regarding a specific format (the convenience format), which is emerging in some categories and is mature in others. This research covers a lack of both conceptual and empirical studies that are targeted at understanding these formats and at analysing their current and future situation. The most specific contribution is the focus on a specific format not analysed previously, from the point of view of economic ratios including an approximation to marketing productivity, a priority area of study in this area of knowledge. The analysis performed allows verifying the positive evolution shown by the format in recent years. It also reflects upon the fact that it would be advisable for competent authorities to publish periodic statistics on the global format and on its types.