In the first half of this year, 60% of convenience stores in China experienced a year-on-year decline in net profits. The proportion of enterprises with a decrease in net profit compared to the same period last year has significantly increased, raising concerns for industry players, especially with 71.7% of convenience stores seeing a decrease in customer traffic.
The China Chain Store & Franchise Association released a brief report on the development of convenience store businesses in the first half of 2026 on its official website on July 21. The report outlined various operational data of Chinese convenience stores from January to June this year.
According to the report, “Through summarizing the feedback from questionnaires of 60 member companies, this report is generated. In the first half of 2026, the total number of stores of the 60 sample companies reached 127,872, with a net increase of 1,391 stores.”
The report indicated, “Companies experiencing sales growth and decline accounted for 46.7% and 50.0% respectively; those with stable or increasing net profits versus declining net profits accounted for 40.0% and 60.0%. Companies are facing significant growth pressure: 71.7% witnessed a decrease in customer traffic; the proportion of enterprises with a decline in sales and net profit compared to the same period last year has notably increased, while the proportion of companies with online sales growth has slightly decreased.”
Specifically, “In the first half of 2026, only a little over 10% of companies saw an increase in customer traffic, which is the most significant decrease among five key indicators.”
During the China Convenience Store Conference held in Changsha in May, Hua Dong, Vice Chairman of Lawson (China) Investment Co., Ltd., remarked, “The biggest change is the decrease in customer traffic to stores.”
In response, an article by the ‘YOUNG World’ under Ok Nano Media Technology (Beijing) Co., Ltd. on July 28 noted that the 71.7% decline in customer traffic for convenience store businesses is the most concerning issue for industry players. Among all operational data, customer traffic does not lie; sales revenue and profit margin are results, while customer traffic is the root cause.
The decline in customer numbers directly leads to a decrease in convenience store revenue. According to data from the China Chain Store & Franchise Association, in 2025, the average daily revenue per store in Chinese convenience stores dropped to 4,453 yuan, a 3.9% year-on-year decrease; the number of customers per store decreased by 8.7% year-on-year; and the sales per unit area decreased by 4%.
Industry professionals believe that the reason for the decline in convenience store customers is due to the expansion of online shopping and express delivery services, which have diverted customers.
Hou Yi, the original founder of Hema, analyzed at the Changsha Convenience Store Conference that in the past, if there was no soy sauce at home in the middle of the night, people would go downstairs to the convenience store. Today, with the convenience of mobile apps like Meituan, JD Express, and E Le Me for nearby retail, delivering in just over ten minutes, this is shaking the foundation on which convenience stores have survived. The once relied upon advantage of convenience for convenience stores is now becoming the advantage of instant retail platforms.
Furthermore, the rising popularity of bulk snack stores, offering cheaper prices than convenience stores, has attracted students and young white-collar workers, taking away a portion of their customer base.
‘YOUNG World’ believes that consumers are voting with their feet, and they have been voting for a long time.