Video: US 7-Eleven Innovates With Japan in Mind

7-Eleven is looking to reinvent its food business by leveraging the success of its Japanese arm, according to a video by The Wall Street Journal. Much of the innovation is slated to come to prepared foods and the center store.

“Convenience stores have historically made their money selling tobacco and gas. But now, as cigarette sales decline and many expect gas sales to slow, many are racing to find other sources of revenue and [are] doubling down on food,” said The Wall Street Journal.

Marissa Jarratt, chief marketing and sustainability officer at 7-Eleven, explained that the U.S. business has already borrowed some of the techniques from the Japanese side of the business, including their approach to retail operations called “tanpin kanri” wherein assortments at a store are localized to the needs of the customers.

“We actually help our stores localize their assortment so that they have the right balance of a consistent assortment of products that customers would expect to see nationally as well as items in the assortment that are perfectly appropriate for a given store’s location,” said Jarratt.

The brand is also doubling down on its private label: according to the report, the chain hopes that it will make one-third of its sales from store-brand goods including food next year. To help achieve this, the chain is looking to upgrade its prepared food business to the degree of its Japanese arm, said the report.

The brand currently has 17 commissaries that make food for its U.S. locations, however, it is working to upgrade them through a collaboration with Warabeya, a supplier for 7-Eleven Japan, according to the report. The new facilities prioritize delivering a wider, more localized selection of offerings.

Following is The Wall Street Journal video about the topic.

7-Eleven operates 13,1222 North American stores. Full Story