ANNUAL REPORT STATE OF THE INDUSTRY Another Record-Breaking Year For Operators 2 0 1 9 : Last year, convenience services operators had their strongest year yet, expanding locations and boosting sales by diversifying product and service offerings. By Abby White, Editor I Industry revenue in billions 20 19.25 18.96 19.31 20.17 19.69 20.90 21.60 22.0 24.2 23.5 2018 5 Growing 2010 CHART 2: 2011 2012 2013 2014 2015 2016 2017 2018 2019 Operator sales SIZE REVENUE RANGE % OF 2019 OPERATORS Small under $1M 67.1% $1.3B 5.2% Medium $1M - $4.9M 16.5% $4.4B 18.3% Large $5M - $9.9M 7.1% $5B 20.9% Extra large $10M + 9.4% $13.5B 55.6% Automatic Merchandiser * June/July 2020 PROJECTED 2019 SALES % OF 2019 SALES 0% 10 2.9% 17.7% 15 0 10 2019 1% BILLIONS OF DOLLARS 25 79.4% CHART 1A: CHART 1B: Micro Market 2-year review 99% t may be hard to imagine due to the current economic downturn, but 2019 was a great year for the convenience services industry. As Automatic Merchandiser's annual State of the Industry survey on the vending and micro market segments reveals, the total industry revenue climbed to $24.2 billion, a nearly 3% increase over the previous year. (chart 1A). More than a third of survey respondents reported that their operations' total sales increased by at least 10% between 2019 and 2018 (chart not shown). Operators also reported a larger percentage of sales in categories outside of vending, micro markets and office coffee service (chart 7C). Staying the same Declining 55.6% of the industry's revenue is made up of 9.4% of the businesses 55365287 | Tovovan | Dreamstime.comhttp://www.Dreamstime.com