Dive Brief:
- 7-Eleven is planning to open over 600 large-format, food-focused convenience stores in North America by the end of 2027, according to an investor presentation posted Thursday by parent company Seven & i Holdings.
- These locations will showcase a new prototype the company internally calls its New Standard stores, according to the presentation. They are “more contemporary facilities” that offer “a larger product assortment and expanded food and beverage offerings” compared to the rest of its stores, CEO Joseph DePinto told investors on Thursday.
- 7-Eleven is leaning into foodservice as a means to help improve its financial standing in North America — especially in the U.S. — where it has taken a significant financial blow this year amid economic headwinds.
Dive Insight:
7-Eleven’s New Standard format is the first prototype the convenience retailer has launched since it rolled out its Evolution store concept in March 2019. Those locations featured 7-Eleven’s Mexican QSR, Laredo Taco Company, as well as made-to-order specialty beverages, self-serve specialty coffee, a cold treats bar, mobile checkout and delivery capabilities.
DePinto said on Thursday that 7-Eleven has “leveraged key learnings” from its Evolution stores over the past few years, which have resulted in the New Standard design. He added that beyond the increased food and beverage offerings, the New Standard c-stores feature “many of the same elements of the Evolution stores,” as well as in-store seating and electric vehicle charging stations.
It’s unclear how many New Standard c-stores 7-Eleven currently has. It appears that the first location opened about a month ago in the Dallas suburb of Allen, Texas, according to a LinkedIn post from Danielle O’Neill, director of construction for Texas-based contractor Schaeffer Construction, which worked with 7-Eleven on the store.
DePinto said the New Standard stores that are open have provided 7-Eleven with an 11% return on invested capital. Additionally, these locations have outpaced the total sales its Evolution stores made in that program’s first year by 30%, according to the investor presentation.
7-Eleven plans to operate 115 New Standard locations by the end of 2024. It aims to build 125 of them next year, 175 in 2026 and 200 in 2027, according to the presentation. The company did not specify where it will open these locations
“Our new stores are food and beverage forward, and our customers appreciate them, and the stores continue to improve,” DePinto said.
Revealing plans to open over 600 New Standard c-stores coincides with 7-Eleven’s plans to shutter hundreds of other locations. Earlier this month, the company revealed it will close 444 underperforming locations in North America as it continues to face financial and operational headwinds caused by price-conscious consumers, declining cigarette sales and weaker-than-expected fuel gross profits. The company in recent weeks slashed its fiscal 2024 operating income forecast by nearly 28%, from $2.9 billion to $2.1 billion.
Irving, Texas-based 7-Eleven operates nearly 12,650 convenience stores in the U.S. — by far its largest market in North America. That number drops to nearly 2,000 in Mexico and about 600 in Canada.
