7-Eleven, a leader in the convenience store industry, has set ambitious plans to build 500 new “Food-Forward” stores by 2027, according to a recent investor presentation from its parent company, Seven & i Holdings. This initiative comes as part of the company’s ongoing strategy to adapt and thrive in an increasingly competitive retail landscape.
The new store format, referred to internally as the “New Standard” stores, builds on insights gained from the company’s earlier “Evolution” store format, first introduced in Dallas in March 2019. By expanding on the successful elements of this format, the new developments are expected to not only cater to changing consumer preferences but also leverage cutting-edge technology.
According to Joe DePinto, CEO of 7-Eleven, the company aims to open 125 of these new locations in 2025 before ramping up to the planned 500 by 2027. The focus on food in their growth strategy marks a significant shift for the retailer, which has traditionally emphasized snack foods and convenience items. DePinto remarked, “We plan to…I emphasize that the company is focusing on food in its growth strategy going forward.”
Meeting Modern Expectations
The new store designs aim to serve the evolving expectations of consumers. As dining habits change, shoppers increasingly seek fresh, high-quality food options even in convenience store settings. Predictions indicate that these new stores will feature broader product assortments, including expanded food and beverage offerings, and in-store seating designed to encourage customers to dine in rather than just grab food on the go. This is a notable shift in the retail landscape, where consumer demands for convenience are balanced with a desire for quality.
Incorporating features such as electric vehicle charging stations also aligns with evolving environmental concerns and the growing emphasis on sustainable choices in the marketplace. With more consumers opting for electric vehicles, having charging stations on-site can enhance foot traffic and meet customer needs.
Performance and Strategic Focus
Interestingly, performance metrics from 7-Eleven’s existing “New Standard” locations highlight the potential success of the new stores. According to the company, these newer formats have already achieved 13% higher same-store sales compared to other locations in their first year of operation. The expectation is that these new standard stores will see an additional 30% growth in sales at full maturity, which translates to an average of $8,219 per store per day.
Moreover, this move comes alongside the closure of 444 underperforming stores in North America. The company has attributed these closures to economic factors, including inflation and declining cigarette sales, both of which have impacted overall retail performance. By focusing on new store formats that align more closely with current consumer preferences, 7-Eleven aims to reposition itself for long-term success.
Expansion of Proprietary Products
Part of 7-Eleven’s ongoing modernization strategy includes an emphasis on proprietary products. DePinto confirmed that the company is committed to expanding its offerings of in-house food products, focusing on trendy and popular options such as hot food selections, grab-and-go cases, specialty beverages, and self-service rollers for hot items. This strategic shift is intended to meet growing consumer demands for fresh, readily accessible food options while increasing the differentiation of 7-Eleven’s brand in the competitive landscape.
The Big Picture
In a broader retail context, 7-Eleven’s strategy reflects a larger trend where convenience stores are transforming into multi-faceted spaces that prioritize food offerings. With over 83,000 convenience stores operating across 19 countries and regions, including approximately 13,229 locations in the United States and Canada, the brand is positioned to leverage its extensive network to implement these new concepts effectively.
As consumer preferences continue to sway towards fresher, more substantial food options, convenience retailers like 7-Eleven will need to innovate continually. The incorporation of advanced technologies, enhanced in-store experiences, and a growing focus on sustainability may prove pivotal in maintaining competitive advantage.
With these developments, 7-Eleven not only seeks to solidify its position in the convenience market but also adapt to the shifting dynamics of food retailing, thereby ensuring continued relevance in the years to come.
