Convenience Store vs Specialty Store: What's Best for Your Retail Business?

When you’re running a retail store, you’re not just selling products. Every day, you’re balancing inventory. You’re keeping customers happy. You're aiming for profits that justify the late nights and early mornings. 

But will you opt for the convenience store route? Or will you choose specialty stores?  

Both options have their pros and cons. So, how do you choose? Let’s get into their strengths and challenges. We’ll also explore how, no matter which path you choose, a good POS system will help you succeed.

What’s the Difference Between Convenience and Specialty Stores?

Convenience stores and specialty stores are brick-and-mortar stores. But what does brick-and-mortar mean? Well, they are physical stores. Customers visit them in person. They’re not online-only businesses.

Convenience Stores

Convenience stores live up to their name. They’re for quick, everyday buys. Snacks, drinks, toiletries, and basics. The focus? Speed and easy access.

Most convenience stores operate in high-traffic areas. These include gas stations, neighborhoods, and office complexes. You’ll also find them near popular attractions. In the US, there are 152,396 convenience stores. Big names include 7-Eleven, Wawa, Sheetz, Speedway, and Circle K. Customers don’t linger or browse. They’re in and out, fast. 

Specialty Stores

On the other hand, specialty stores stick to one product category or niche. Take Murray's Cheese, for example; it’s all about gourmet cheese. The Dog Bar is a boutique for pet supplies. DaveCo is a specialty liquor store.

So, specialty stores attract specific customers. These shoppers want something unique or high-quality. About 20% of specialty shops carry at least 10 brands. A larger 66% stock over 20 brands. These customers spend more time browsing. They care about what you’re selling. And thus, they spend more money too.

Pros & Cons of Running A Convenience Store

So, what is the advantage of a convenience store over a specialty store? Well, running a convenience store has some serious upsides. That’s especially true if you’re in the right location.

Pros of Convenience Stores

Steady Foot Traffic

You’re selling everyday essentials, just like 7-Eleven. People always need - a quick coffee before work, milk for the family, or other essentials. If your store is near homes or busy roads, they’ll keep coming back.

Impulse Buys Are Your Friend

Have you ever gone to Circle K to grab a soda but left with chips, candy, and gum? Exactly. Convenience stores exist for such small, unplanned purchases.

Easier Inventory Management

You’re usually stocking fast-moving, low-cost items. It’s less about sourcing rare products and more about keeping shelves full.

Challenges of Convenience Stores

Competition Is Everywhere

Bigger chains, supermarkets, and online apps are your competition. Staying unique is tough. Take 7-Eleven, for example. It's a popular convenience store. But it competes with large grocery chains like Walmart. Walmart offers similar products in bigger quantities. 

Lower Profit Margins

A bottle of soda or a bag of chips may not make much profit alone. But when sold in bulk, the profit adds up. Customers want quick snacks or drinks. This increases your store’s total revenue.  

Theft and Shrinkage

Candy, cigarettes, or small electronics that are easily pocketable items are often stolen. The result? Shrinkage, which means loss of inventory. To prevent this, convenience stores must invest in security guards, alarm systems, and video cameras.

Why a Specialty Retail Store Might Be for You

Do you love focusing on a niche? Or do you like creating a curated experience? If yes, a specialty store could be your dream business.

Pros of Specialty Stores

Higher Margins

Specialty items often cost more. This means higher profit per sale. Take Apple products. iPhones, MacBooks, and accessories at Apple stores have premium prices.

Loyal Customer Base

Customers who love what you offer will come back again and again. When you run a high-end coffee shop like Blue Bottle Coffee, caffeine lovers are likely to vouch for your expertly made coffee and single-origin beans.

Less Direct Competition

Sure, Amazon exists. But suppose a physical store offers personalized service and unique products. This helps it stand out. Big-box stores can’t do this. For example, The Container Store focuses on high-quality storage solutions. It also offers personalized advice.

Challenges of Specialty Stores

Higher Startup Costs

Specialty items have to source higher-quality products. So, it can get pricey. For example, Custom Skateboards is a niche store that specializes in custom-painted skateboards. It sources high-quality materials. It also works with local artists to create one-of-a-kind designs. 

Niche = Limited Audience

The audience of specialty stores is much more limited to convenience stores. Not everyone is looking for custom-painted skateboards. You’ll need to know your customer preferences well.

Slower Foot Traffic

Customers don’t rush in and out of specialty stores like they do at convenience stores. Take The Spice House, for example. It’s a specialty spice shop in Chicago and Milwaukee. Customers visit for rare, high-quality spices. They look for unique blends to enhance their cooking. 

How Can Your POS System Help?

Whether you’re running a convenience store or a specialty shop, needing to keep your business running smoothly is one thing for sure. That’s where a modern retail POS system comes in.

Speed Up Transactions

An mPOS system ensures fast and smooth checkouts at a busy convenience store with customers rushing in and out or a specialty shop with a long line during a holiday sales. Scan items. Accept cash or contactless payments like cards and digital wallets. Get customers through quickly. 

Manage Inventory Efficiently

Convenience stores need to track fast-moving products like drinks, snacks, and toiletries. Specialty stores handle unique, high-value items with various sizes, colors, or styles. A POS system keeps tabs on what’s selling. It also alerts you when stock is running low.

Track Sales Data

You could be stocking soda for busy weekends or identifying which premium sneakers sell best. A handheld POS system provides in-depth sales analytics reports. This helps you spot trends. You can plan inventory. The result: Smarter business decisions.

Final Thoughts: Choosing What’s Best for You

The retail world is full of opportunities. So, convenience store or specialty store — what’s the right fit? Well, if you love high volume, fast-paced sales, and steady foot traffic, go the convenience store route. But if you’re passionate about a niche and want to create a unique shopping experience, consider a specialty store.

Ready to level up your store’s efficiency? Book a demo with OneHubPOS today and see how it can transform your retail operations. Fast checkouts, smarter inventory, and happy customers are just a click away!