7-Eleven Aims to Revitalize Its $17 Billion Food Business with Japanese-Inspired Offerings

7-Eleven, the world’s largest convenience store chain with over 13,000 locations in North America, is undertaking a significant transformation of its $17 billion food business to incorporate more Japanese-inspired offerings. Recognizing the decline in tobacco and gas sales, the company is shifting its focus towards food as a primary source of revenue. This move includes upgrading its distribution system, partnering with Japanese supplier Warabeya to introduce a wider and more localized range of food products, and leveraging massive data operations to cater to customer preferences and spur impulse buys. The company hopes to increase its sales from store brand goods, including food, to make up one-third of its sales next year, up from less than one-quarter in 2022.

• 7-Eleven is revamping its food business to include more Japanese-inspired offerings.
• The company is responding to declining tobacco and gas sales by focusing more on food, aiming to make it a primary revenue source.
• It plans to increase sales from store brand goods, aiming for these to constitute one-third of its sales next year.
• 7-Eleven has partnered with Japanese supplier Warabeya to enhance its food production capabilities.
• The company is upgrading its distribution system to allow for daily order customization based on sales data, demographic trends, and local weather forecasts.
• American 7-Eleven stores are adopting the Japanese approach of stocking only fast-selling items and making multiple shipments to stores every day.
• The company’s loyalty program, which has 95 million members, plays a significant role in its data operation strategy to target customers with personalized advertising.
• Delivery is the fastest growing part of 7-Eleven’s business, with orders typically doubling the amount of in-store purchases.
• 7-Eleven is leveraging its large-scale data operations to better understand and meet customer demands, aiming to replicate the success of its Asian stores in the U.S. market.

The Wall Street Journal is an American business and economic-focused international daily newspaper based in New York City. The Journal is published six days a week by Dow Jones & Company, a division of News Corp.

AllSides Media Bias Rating: Center

https://www.allsides.com/news-source/wall-street-journal-media-bias

Official website: https://www.wsj.com

Original video here.

This summary has been generated by AI.