Seven Eleven Case Analysis

Topics: Convenience store, Retailing, 7-Eleven Pages: 3 (744 words) Published: February 24, 2013
What is the future outlook for Seven Eleven Stores in USA?
Seven-Eleven is part of an international chain of convenient stores. 7-Eleven, primarily operating as a franchise, is the world's largest operator, franchisor and licensor of convenience stores, with more than 46,000 outlets. The Seven-Eleven business model consists of five key elements: * A differentiated merchandising strategy;

* Utilization of 7-Eleven’s retail information system & Managed distribution; * Providing a convenient shopping environment; and
* A unique franchise model.
Let us have a brief look over 7-Eleven stores in US and Japan: Seven-Eleven Japan:
* High density market presence with 50-60 stores supported by distribution centre. * Limited geographical presence
* Emphasized regional merchandizing
* Processed and fast foods contributed to most of its sales * Products like food and beverages, magazines and consumer items such as soaps and detergents * Services offered like payment of electricity bills, telephone, gas bills, meal delivery services, 7 dream e-commerce, electronic money offering and many * Advanced information technology helped store to analyse store data every day morning and helps in having valuable shelf life * Information system installed in every outlet and linked to HQ, Suppliers and 7-eleven distribution centres. Uses ISDN to collect, process and feedback POS data quickly * Delivery frequency is high

* Steps involved in the supply chain:
Order->production by supplier-> distribution centre (combined delivery system ->logistics->delivery to retail store Seven-Eleven Inc USA:
* Direct store Delivery due to low density market presence * Fresh foods contributed to most of its sales
* Combined distribution centres to deliver fresh foods once a day * Delivery frequency is low compared with Japan
* Steps involved in the supply chain:
Order->production by supplier with...
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