7-ELEVEN TO DOUBLE ITS AUSTRALIAN FOOTPRINT IN 10 YEARS

Convenience chain 7-Eleven is embarking on a bold strategy to double its footprint in 10 years as it drives growth in new markets. Fiona Hayes, CEO, 7-Eleven, revealed the plan to the delegates at the Australian Franchise Summit in Melbourne today.

“7-Eleven has been a leader here, particularly in convenience where we have about 33 per cent of the market, and 11 per cent of the fuel market.

We are embarking on much broader journey, firstly in neighbourhoods, so we are planning to double our store growth over the next 10 years,” Hayes said.

“We want customers all around Australia to view 7-Eleven as ‘my convenient neighbourhood store’.

From the time they wake up in the morning to night time, every avenue for convenience in your life,” she said.

Broadening merchandise offer

Hayes said the brand is broadening its merchandise offer and will lean on the expertise of 7-Eleven International in the food and the food supply chain across the 22,000 7-Eleven stores in Japan.

“Evolving our merchandise offer and expertise is incredibly exciting,” she said.

Hayes told Franchise Executives 7-Eleven has unveiled three concept stores that have evolved from the Johnny’s Deli format, with a greater focus on hot food and chilled meals, from hot pastries to grab and go deli items and bowl food.

“Chicken and chips are really popular and we are about to launch pizza slices,” she said.

Superior operations will be key to the growth plan: improved processes will enable store team members to increase their customer interaction and spend more time on food preparation.

“We have to have great people, efficient and effective process and procedures, and we have lots of opportunities to improve,” she said.

‘We will be increasing staff, balancing the labour costs as we see increased sales. And we will be automating what we can.”

The focus on a greater food offering will see a remodelling of store formats to allow for a greater kitchen footprint, and store size increasing slightly.

Grocery offer increasing

Customers can expect to see a gradual increase in the grocery element of the merchandise, as 7-Eleven takes its offer beyond last-minute convenience, responding to the trend for households to shop for groceries more frequently.

“We want to change the perception of 7-Eleven to a go-to for our shopping.

We are expanding our grocery and fresh food offer, and finding what our customers want to eat,” Hayes told Franchise Executives.

7-Eleven is reporting growth across its home delivery service, which accounts for 5 per cent of sales, and e-commerce, which is seeing double-digit growth.

“We see ourselves as a value player. We are seeing increasing visitation and spend through loyalty engagement,” Hayes said.

“Our fuel pillar is still in growth and a huge driver of customers in stores and our loyalty program is very active in the fuel space.

“We are planning enormous growth in new markets, and see ourselves as a value player, differentiating ourselves with our food.

It is very exciting. We are embarking on big and bold growth ambition,” Hayes said.

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