7-Eleven

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Though there are countless convenience stores in North America, it’s 7-Eleven that has made its mark and became a global success. 7-Eleven is an international chain of convenience stores that operates, licenses, and franchises around 56,600 stores in 18 countries. The Company operates over 10,000 franchised or company-owned stores in the U.S. and Canada under the 7-Eleven name, which is the North American subsidiary of Seven-Eleven Japan. Its stores range from 2,000 to 3,000 sq. ft. and sell more than 2,500 items. The leading convenience store company in the world is owned by Seven & i Holdings, which is a Japanese retail conglomerate and the parent company for Seven-Eleven Japan, Denny’s restaurants, Ito-Yokado, and several other businesses.

Founded in 1927 as a combination of ice dock and retail shop in Dallas, TX, 7-Eleven outlets was originally known as Tote’m stores until it was changed in 1946. The store offered a wide range of fresh food and beverage stored in ice for convenience, and later on even started selling gasoline. Despite being severely affected by hard times during the Great Depression, the Company was able to get back on its feet soon after World War II and the great American economic development. Now named as 7-Eleven, to reflect the stores’ new, extended hours – 7 a.m. up to 11 p.m., the franchise expanded quickly all the way through the 1950s and 1960s.

The Company’s first 24-hour stores were introduced in the early 1960s, and quickly changed a lot of its older outlets to a 24-hour schedule after seeing its success. This round-the-clock schedule is now a trademark of 7-Eleven’s business model and one that’s been replicated by many of its major competitors. In the last quarter of 1969, 7‑Eleven became more famous for its Slurpee drinks and expanded to about 3,500 stores in the U.S. and went global by opening branches in Canada. Some of the growth was accomplished in 1964 when the Company went into the franchising business with the acquisition of 127 California Speedee Marts. 7-Eleven then went south to Mexico and signed a licensing agreement. It was in 1974 when the company reached its 5,000th-store milestone and continued its global expansion overseas in Japan.

The franchise grew rapidly throughout the 1970s and 1980s, opening up more stores in South Korea, Thailand, and Japan. By the second quarter of 1980, the company had branches operating in Taiwan, Hong Kong, Norway, Sweden, and many other major markets. Unfortunately, during the 1980s, the founding company of 7-Eleven suffered financial difficulties, mainly because of the stock market crash of 1987. But after being acquired by Japan’s Seven & i Holdings, 7-Eleven re-established itself as the USA’s convenience store leader and continues to expand globally.

In North America, 7-Eleven is cultivating wider store networks through aggressive acquisitions and store openings. It’s concentrating on opening branches with gasoline stations, as gasoline accounts for about half of total store sales. Like its Japanese parent, 7-Eleven implements a market concentration approach to ensure efficient infrastructure usage and merchandising. The Company aims to distinguish itself by increasing its fast food offerings and private-brand products.

The convenience store chain managed to get ahead its competitors using two very different business strategies. Not only is 7-Eleven one of the world’s biggest franchises but it’s also a lucrative business with its own stores. Even though a majority of 7-Eleven stores are franchised, the company runs several of its own stores in high-traffic areas. To date, 7-Eleven has over 56,600 stores in 3 continents, earning its place as the top business by most number of stores in the world.

From Big Gulp drinks to specialty sushi items sold in its Japanese outlets, 7-Eleven is committed to make drinking and eating as convenient as possible for its millions of patrons around the globe. A useful and innovative business with a distinctive approach to the world, 7-Eleven is an excellent example of a thriving business that’s stood up to the test of time and came out the other end stronger than ever.

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7-Eleven

by Helen Thompson time to read: 3 min
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