A Fresh Start: 7-Eleven Plans 600 Redesigned Stores Focused on Food and Beverage

According to The Sun, 7-ELEVEN‘s CEO, Joseph DePinto, has announced ambitious plans to open 600 new stores in North America by the end of 2027. These stores will feature a revamped design, emphasizing food and beverage offerings.

New Standard Stores

The upcoming locations will showcase a large-format, food-centric prototype called New Standard. DePinto shared details with investors, highlighting that these stores will boast contemporary facilities with a wider range of products compared to existing locations.

Learning from Evolution

This new format is the first prototype since the introduction of the Evolution store concept in 2019. DePinto emphasized that the company has leveraged valuable insights from its Evolution stores to inform the design of the New Standard stores. Key features will include in-store seating and electric vehicle charging stations.

Early Success and Growth Plans

Although the exact number of New Standard stores currently in operation is unclear, the first location opened about a month ago in Allen, Texas. Initial reports indicate that these stores are delivering a 11% return on invested capital and have outperformed the sales of Evolution stores by 30% during their first year.

7-Eleven aims to establish 115 New Standard locations by the end of 2024, with plans to add 125 in 2025, 175 in 2026, and 200 in 2027. The specific locations for these new openings have not yet been disclosed.

Addressing Underperformance

In conjunction with these expansion plans, 7-Eleven has acknowledged the need to close 444 underperforming locations as part of a broader strategy amid a challenging retail environment. The company is facing a tough consumer spending climate, especially among lower and middle-income earners, which has led to a more cautious approach to consumption.

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Financial Maneuvers and Market Challenges

In a recent move, the world’s largest convenience store retailer agreed to sell and lease back an undisclosed number of properties in North America for a profit of $520 million, with the deal expected to close in February 2025. The company has noted that the North American market is experiencing a growing polarization in consumer spending due to declining labor incomes, inflation, and high interest rates.

DePinto stated, “Our new stores are food and beverage forward, and our customers appreciate them, and the stores continue to improve,” indicating a strong focus on enhancing customer experience in the evolving retail landscape.