7-Eleven Introduces Larger, 'Food Forward' Store Format
Tokyo-based Seven & i Holdings Co.’s (7&i) unveiled an updated growth strategy during an Oct. 24 investors call and presentation that includes an emphasis on fresh and proprietary food offerings as well as a new store format as it focuses on growing and enhancing its physical network.
In North America, 7-Eleven currently operates 13,229 stores in the U.S. and Canada in 47 of the top 50 markets, with significant room to grow still, CEO of 7-Eleven and head of North American operations, Joseph Michael DePinto, said on the call.
7-Eleven began its store enhancement process with the launch of the “Evolution Store” format in 2019. The format was designed to serve as “real-life experiential and lab testing grounds,” where customers could try the c-store’s latest innovations, DePinto said.
Now, the retailer is moving forward with its new “standard store” format to meet evolving customer needs. Based on findings and feedback from the Evolution Store, DePinto said customers want a larger “food forward” store that provides more fresh and hot food options, more fuel pumps and more innovative, digital and personalized offerings.
7-Eleven plans to open 500 of these larger-sized convenience stores in North America by 2027, with 125 opening next year. On top of the store openings, the retailer also previously announced it would close 444 underperforming stores based on a store-by-store evaluation.
DePinto said the new stores will offer a larger product assortment and expanded food and beverage offerings. They’ll also be more contemporary, with in-store seating and electric vehicle charging stations.
According to the presentation, the new store standard locations are outperforming 7-Eleven’s store network, with 13% higher same-store sales in the first year of opening.
7-Eleven is also planning to expand the number of on-premise restaurants, such as Laredo Taco and Roost Chicken & Biscuits. It currently operates 1,084 in North America and will grow that number at new and existing stores.
7&i said it has already seen a steady increase in fresh food sales and average number of shoppers in Vietnam and Australia, where it has made strategic investments in the category.
Additionally, 7&i said on the call that strength in the fresh food (i.e., ready-to-eat) category will help the retailer grow in North America and globally as it becomes a core part of its overall strategy.
“The competitiveness of our group’s food is a very important factor in the global expansion of our convenience store business,” president and representative director, CEO, 7&i, Ryuichi Isaka, said on the call.
Among its core growth pillars outlined, 7-Eleven North America in particular plans to modernize its fresh food infrastructure and grow its proprietary goods, including in-store restaurant menus, hot/fresh food, self-serve beverages and private-label products. In 2025, the retailer plans to roll out more than 320 proprietary SKUs.
More on 7&i’s Growth Plans
As of February 2024, 7-Eleven International (7IN) operates 84,652 stores across 20 countries and regions. Its footprint has grown significantly since 2005, when the retailer operated about 30,000 stores worldwide, partially due to multiple mergers and acquisitions (M&A), including Speedway in 2020 and 7-Eleven Australia earlier this year. Looking ahead, the retailer plans to have 100,000 stores by 2030.
Additionally, 7&i said it is focusing on enhancing collaboration among regional business operations and allocating capital for multiple strategic investment opportunities, including M&A, retail media, organic store development, modernizing fresh food infrastructure and strengthening “counter food.”
In 2022, Tokyo-based Seven & i Holdings Co.’s (7&i) established 7-Eleven International (7IN) to reflect its commitment to growing the retail brand globally. (7IN is a joint venture between 7-Eleven Inc. and Seven-Eleven Japan Co., which are owned by 7&i).