7-Eleven Is Reinventing Its $17B Food Business to Be More Japanese | WSJ The Economics Of
The Wall Street Journal・6 minutes read
7/11 is bringing more Japanese influence to its American stores by focusing on food sales due to declining tobacco and gas sales, following the acquisition by Japanese company Seven & I Holdings. The company aims to offer a wider variety of fresh food, introduce new products like spicy miso ramen soup, and enhance its menu through data-driven decision-making to adapt to changing industry trends.
Insights
- Japanese ownership by Seven & I Holdings has revolutionized 7/11 stores by introducing data-driven strategies, fresh food options, and customized assortments, contrasting with the previous struggles of American stores with unsold inventory.
- 7/11's strategic shift towards food sales in response to declining tobacco and gas revenues entails enhancing its food offerings through collaborations with Japanese suppliers like Warabeya, leveraging data analytics and targeted advertising to boost sales and capitalize on the rising demand for delivery services.
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Recent questions
How is 7/11 adapting to industry changes?
By focusing on food sales over tobacco and gas.
What sets Japanese 7/11 stores apart?
Offering fresh food, customized orders, and multiple daily shipments.
How did 7/11 evolve after bankruptcy?
Acquired by Japanese company Seven & I Holdings.
What is 7/11's strategy for store brand goods?
Increasing sales, particularly in food, to adapt to industry shifts.
How is 7/11 enhancing its food offerings?
Upgrading Commissaries with the help of Warabeya to introduce new products.
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Summary
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7/11 Shifts Focus to Japanese-Inspired Food
- 7/11, a major convenience store chain in North America, is working to bring more Japanese inspiration to its American stores by focusing on food sales as tobacco and gas sales decline.
- Originally an American company, 7/11 went bankrupt twice before being acquired by a Japanese company, Seven & I Holdings, which emphasized data-driven decision-making and localized assortments.
- Japanese 7/11 stores differ from American ones by offering a wider array of fresh food, customized orders based on sales data, and multiple daily shipments, while American stores previously faced issues with unsold inventory.
- American 7/11 is aiming to increase store brand goods sales, particularly in food, to adapt to industry shifts away from gas and tobacco sales towards food and snacks.
- To enhance its food offerings, 7/11 is upgrading its Commissaries with the help of Warabeya, a supplier for Japanese 7/11, to introduce new products like spicy miso ramen soup and expand its menu, utilizing data and targeted advertising to drive sales and focusing on the growing delivery service.
