(REDENS GROUP) Environmental Analysis

1. Industry Trend
The convenience store industry was always given attention because of their
“convenience” especially to students and nearby communities. Moreover, due to the COVID - 19
pandemic convenience stores were given even more attention. In fact, according to the National
Association of Convenience Stores (NACS), there is an increase of sales of 1.5% in the
convenience store industry. Furthermore, there are products and services of the convenience
stores that became trending which are:

● Reusable Bags and Straws - Due to the rising demand for environmentally friendly and
sustainable products, reusable bags and straws are popular in the convenience store
market. A growing number of people are becoming more ecologically aware and actively
looking for solutions to lower their carbon footprints. With regard to single-use plastic
bags and straws, convenience stores are responding to this trend by providing eco-
friendly substitutes. Uncle John’s currently uses paper bags but does not use recyclable or
reusable straws and bags

● Fresh Fruits - As consumer demand for healthy food options rises during the pandemic,
fresh fruits have started to become more popular in convenience stores. More people than
ever are reportedly paying attention to their health, and convenience stores are
responding to this trend by increasing their selections of nutritious foods. Uncle John’s
has yet to sell fresh fruits.

● Loyalty Programs - Due to loyalty programs' capacity to cultivate a devoted customer

base, they have proven popular in the field of convenience stores. The Philippines'
economy is starting to show signs of growth, which presents businesses with the
opportunity to develop devoted consumer bases. The Cliqq program from 7 Eleven, the
SM Advantage Card from SM Retail, the Value Card from Petron, the HappyPlus
program from Jollibee, and the Suki Card from Mercury Drug are the five loyalty
 programs that now rule the Philippines market. Uncle John’s has no loyalty programs for
their customers.

● Digital Wallet Services - Because cashless transactions are becoming more and more
common, digital wallet services have taken off in the convenience shop sector.
Consumers are now asking for more convenient and secure payment solutions as
cellphones and the internet are becoming more and more common.

2. Uncontrollable Factors that may or may not be influenced.

There are various uncontrollable factors that may affect Uncle John's Convenience Store,
including:

● Economic aspects: Uncle John's Convenience Store may be significantly impacted by

economic factors including inflation, recession, and changes in interest rates. Customers
might be less likely to spend money if the economy is struggling or interest rates are
high, which could result in a drop in sales.

● Natural factors: Uncle John's Convenience Store may be impacted by natural

catastrophes, climate change, and environmental restrictions. For instance, if the store is
damaged by a hurricane or flood, this could affect its ability to run and bring in money.
Also, Uncle John's Convenience Store may have to change business procedures in order
to comply with new environmental standards.

● Competitive Factors: Because of the industry's intense competition, new players can
enter the market at any time. The market share, pricing policy, and sales of Uncle John's
Convenience Store may change as the competitive environment does.

● Technological factors: Advancements in technology can also affect Uncle John's

Convenience Store. For instance, Uncle John's Convenience Store may need to modify its
payment system if more customers begin using mobile payments in order to remain
competitive.
Environmental Analysis
1. Uncontrollable factors
- Technological factors: Technology developments may potentially have an impact on Uncle
John's Convenience Store. For instance, if more customers start utilizing mobile payments,
Uncle John's Convenience Store might have to change its payment system to remain
competitive.

2.