7-Eleven plans to open 115 larger-store formats by year-end, offering customers an expanded assortment of food options. The retailer also plans to add 51 new fresh food SKUs by the end of 2025.
- These “new standard” store formats were informed by findings at the convenience chain’s Evolution locations, which are experiential stores where customers can try 7-Eleven’s latest platforms and products, said Joseph Michael DePinto, CEO of 7-Eleven, Inc., during a recent investor relations call.
- Current larger-format stores are outperforming 7-Eleven’s existing portfolio, delivering 13% higher same-store sales within the first year of opening, according to the retailer.
- 7-Eleven predicts same-store sales will increase another 30% within the next four years, with average sales per store per day totaling $8,219.
Why it matters: Convenience stores like 7-Eleven are expanding their food selection as consumers seek high-quality food options at lower prices.
- Price and value are the top drivers of prepared food purchases at a convenience store, cited by 44% of consumers, according to recent data from Earnest Analytics.
- Food quality (42%), freshness (40%), taste (32%), and convenience (31%) were also factors.
Enhanced convenience stores (those offering fresh foods and beverages, sometimes with dine-in options) now account for 58% of all spending at convenience stores in the US, up from 48% five years ago, per the Earnest Analytics.
- Like 7-Eleven, many convenience retailers are increasing their store size to accommodate these new options.
- The average square footage of US convenience stores has increased by 1.8% over the past two years, per Earnest Analytics.
These efforts seem to be paying off—in-store convenience store sales in the US reached $327.6 billion last year, up from $302.8 billion in 2022, according to the National Association of Convenience Stores (NACS).
- Food service sales, which include prepared food, commissary, and hot, cold, and frozen dispensed beverages, rose 1.3 percentage points.
- Sales of prepared food grew 12.2% in 2023 to reach $51,500 per store per month, the top driver of in-store sales.
- Overall basket size grew as well, increasing 3.7% to $7.80.
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