Berjaya Group - Competitors

Berjaya Group Competition

Now Viewing Berjaya Group's competition in: Convenience Stores and Gas Stations

Recent Developments

US District Court Ruling Could have Major Impact - An ongoing lawsuit, recently buoyed by a US District Court decision, could eventually force gas stations to install new pumps and equipment. The lawsuit concerns the temperature of gas, which is priced based on an assumed temperature of 60 degrees Fahrenheit. Those bringing the suit, which includes several US states, allege that in warmer weather consumers get less gas than they should due to expansion. Retrofitting pumps at gas stations would be expensive, which has created controversy about how to resolve the situation.

High Gas Prices have Multiple Impact - Higher gas prices hurt gas stations: many consumers are using less gas, according to the National Association of Convenience Stores (NACS). While 13 percent of consumers reduce gas consumption at $3 a gallon, another 50 percent will reduce usage at $3.25. Less driving and higher prices may also mean fewer consumers coming inside c-stores to buy higher-margin goods after filling up.

Winter Weather More than Inconvenient - A harsh Midwest winter in 2008, more than just inconveniencing c-store and gas station owners, significantly hurt the bottom line of some major chains. Ice and snow removal, and increased compensation for customer falls compared to winter 2007, have resulted in higher expenses in 2008. Some of the chains publicly acknowledging this winter's economic woes are Casey's General Stores, Speedway SuperAmerica, and Love's Travel Stops & Country Stores.

Competitive Landscape

Demand depends mainly on the volume of car driving, which in turn depends on economic activity. The profitability of individual stores is closely linked to location and product mix. Large companies have advantages in buying gasoline at bulk prices, but small companies can compete effectively by having superior locations. Annual revenue per worker is close to $300,000.

Full Industry Overview For Convenience Stores and Gas Stations

Convenience Stores and Gas Stations Industry Forecast

from Hoover's/D&B subsidiary First Research

US personal consumption expenditures of gasoline, oil, nonalcoholic beverages, and tobacco, all major indicators for convenience stores and gas stations, are forecast to grow at an annual compounded rate of 2.4 percent between 2007 and 2012.

Volatile Consumer Spending Growth on Convenience and Gas Products

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.