According to The Sun, 7-ELEVEN’s CEO has unveiled ambitious plans to open 600 new stores in North America, featuring a revamped design that deviates from the company’s traditional layout.
New Standard Stores
The new convenience stores, set to debut by the end of 2027, will showcase a large-format, food-focused prototype known as the New Standard. CEO Joseph DePinto shared details with investors, highlighting that these stores will provide “more contemporary facilities” with an expanded product assortment and enhanced food and beverage offerings compared to existing locations.
Learning from the Past
The New Standard format marks the first new prototype since the launch of the Evolution store concept in 2019. DePinto noted that the retailer has “leveraged key learnings” from its Evolution stores, which will be integrated into the New Standard plans. These new locations will include features like in-store seating and electric vehicle charging stations, aiming to create a more customer-friendly environment.
Successful Launches
While the exact number of New Standard stores currently in operation is unclear, the first location opened about a month ago in Allen, Texas. According to DePinto, these new stores have shown impressive results, delivering an 11 percent return on invested capital and surpassing the first-year sales of Evolution stores by 30 percent, as outlined in Thursday’s investment presentation.
Growth Timeline
7-ELEVEN intends to operate 115 New Standard locations by the end of 2024, with plans to open 125 more in 2025, 175 in 2026, and 200 in 2027. However, specific locations for these new stores have yet to be disclosed.
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Addressing Underperformance
As part of its growth strategy, 7-ELEVEN has also acknowledged the need to close “underperforming” locations amid a challenging retail landscape. The company plans to shut down 444 of its stores, adding to its list of closures.
Financial Moves
Additionally, the world’s largest convenience store retailer recently agreed to sell an undisclosed number of properties in North America through a sale-leaseback arrangement, aiming for a profit of approximately $520 million. This deal is expected to close in February 2025.
Economic Challenges
In its announcement, Seven & i acknowledged that North America is experiencing a “tough consumer spending environment,” particularly affecting lower and middle-income earners. Consumers are adopting a more cautious approach to spending due to inflationary pressures, high interest rates, and declining labor incomes, leading to a growing polarization of consumption.
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