The brand name, 7-Eleven is now part of an international chain of convenience stores, operating under Seven-Eleven Japan Co.,Ltd., primarily operating as a franchise. It is the largest chain store with more than 36,842 outlets operating around the world, surpassing the previous record-holder McDonald’s Corporation in 2007 by approximately 1,000 retail stores. Its stores are located in eighteen countries, with its largest markets being Japan, the United States, Canada, the Philippines, Hong Kong, Taiwan, and Thailand. 7-Eleven, Inc. as a former U.S.-originating company, is a subsidiary of Seven-Eleven Japan Co.,Ltd, which in turn is owned by Seven & I Holdings Co. of Japan. Among 7-Eleven's offerings are private label products, including Slurpee, a partially frozen beverage introduced in 1967, and the Big Gulp introduced in 1980 that packaged soft drinks in large cups ranging in size from 590 ml to 1.8 L (20 to 64 fluid ounces). The US chain has its headquarters in the One Arts Plaza building in Downtown Dallas, Texas.
History
The company has its origins in 1927 in Dallas, Texas, USA, when an employee of Southland Ice Company, Joe C. Thompson, started selling milk, eggs and bread from an ice dock. The original location was an improvised storefront at Southland Ice Company, an ice-manufacturing plant owned by John Jefferson Green. Although small grocery stores and general merchandisers were present in the immediate area, the manager of the ice plant, Joe C. Thompson, discovered that selling convenience items such as bread and milk was popular due to the ice's ability to preserve the items. This significantly cut back on need to travel long distances to the grocery stores for basic items. Joe C. Thompson eventually bought the Southland Ice Company and turned it into the Southland Corporation which oversaw several locations which opened up in the Dallas area. Initially, these stores were open from 7 a.m. to 11 p.m., hours unprecedented in their length, hence the name. The company began to use the 7-Eleven name in 1946. By 1952, 7-Eleven opened its 100th store. It was incorporated as the The Southland Corporation in 1961.
In 1962, 7-Eleven first experimented with a 24-hour schedule in Austin, Texas. In 1963, 24-hour stores were established in Las Vegas, Fort Worth, and Dallas.
In the 1980s, the company ran into financial difficulties and was rescued from bankruptcy by Ito-Yokado, its largest franchisee. In 1987, John Philp Thompson, the CEO of 7-Eleven, completed a $5.2 billion management buyout of the company his father had founded. The buyout suffered from the 1987 stock market crash and after failing initially to raise high yield debt financing, the company was required to offer a portion of the company's stock as an inducement to invest in the company's bonds.
The Japanese company gained a controlling share of 7-Eleven in 1991, during the Japanese asset bubble of the early 1990s. Ito-Yokado formed Seven & I Holdings Co. and 7-Eleven became its subsidiary in 2005. In 2007, Seven & I Holdings announced they would be expanding their American operations, with an additional 1,000 7-Eleven stores in the U.S.
Products and services
In addition to Slurpee and the Big Gulp, 7-Eleven would come to own or operate several brands and concepts, including Movie Quik, an in-store video-rental service; Citgo, the gas brand sold at many locations up until 2006; as well as Chief Auto Parts, which had locations adjacent to or near several 7-Eleven locations. They bought White Hen Inc. on August 10, 2006, mostly in or around the Chicago area, and plans to convert all of the remaining White Hens to 7-Eleven stores.
The Big Gulp fountain drink brand refers to the name of the 32-ounce (1 litre) fountain drink, the Big Gulp. There is a 44-oz. (or a smaller 1.2 L, depending on region) size ( Super Big Gulp), a 64-oz. (2 l) size (Double Gulp), and a 20-oz. (0.7 l) size (Gulp). In 2005, 7-Eleven began selling its brand of bottled drinks under the Big Gulp brand name in North America.
Since 2005, the company has offered 7-Eleven Speak Out Wireless, a prepaid phone service where a cellphone can be purchased directly from a 7-Eleven store in the US and Canada and activated on the spot.
The 7-Eleven convenience store announced on November 3rd, 2009 that it is getting into the value wine business, releasing two low-priced proprietary wines in the United States (under the 'Yosemite Road' brand) and Japan.Marketing strategies
July 11 is marketed as "7-11 Day" in the USA, during which participating 7-Eleven stores offer up to 1,000 customers a free 7.11-oz. Slurpee of their choice. In Australia this occurs on 7 November.
On November 9, 2006, 7-Eleven announced that it had signed on as a major sponsor of the Dallas Mavericks for the following three seasons and as title sponsor of its popular Street Team. As part of that agreement, 7-Eleven gave free coupons to Mavericks fans American Airlines Center following each of the 41 home games of the 2006–2007 season.
Since the 2007 season, 7-Eleven began a promotional partnership with the Chicago White Sox to begin home night games at 7:11 PM Central Time. The agreement paid the team $1.5 million over three years to move their weeknight game times back four minutes from the traditional Sox start time of 7:07.
In anticipation for the July 2007 release of The Simpsons Movie , 7-Eleven turned 12 of its North American stores into Kwik-E-Marts. Those stores, plus most of the over 6,000 other stores in North America, sold Buzz Cola, KrustyO's cereal (a version of Fruit Loops), Squishees, pink donuts, and other items from the show. Also, many regular items, such as coffee and sandwiches, had special Simpsons -themed wrapping and packages. As part of the movie promotion, 7-Eleven held Simpsons contests as well, which one entered by buying certain products in 7-Eleven stores. The "Kwik-E-Mart" promotion turned out to be a huge success for 7-Eleven, with Simpsons fans driving as far as hundreds of miles to buy the special themed merchandise. It also resulted in a 30% increase in profits for the converted 7-Elevens.
7-Eleven around the world
Australia
The first 7-Eleven in Australia opened on August 24, 1977 in the Melbourne suburb of Oakleigh. There are currently 385 stores in the states of Victoria, New South Wales and Queensland; the majority of stores are in metropolitan areas, particularly in CBD areas. Stores in suburban areas often operate as petrol stations. Stores are owned and operated as franchises, with a central administration.
Stores in Australia sell Slurpees in four sizes - Small, Medium and Large which are served in different coloured paper cups and Jumbo which is served in a clear plastic cup with a dome lid. Stores selling Slurpees have a machine dispensing four flavours - some CBD stores have as many as three machines.
7-Eleven stores sell gift cards including three Prepaid VISA cards. There are daily newspapers, drinks, confectionary, and snack foods. They sell pre-prepared food such as sandwiches, wraps, pies, sausage rolls under their proprietary brand 'munch' delivered fresh into stores daily.
7-Eleven stores have partnered with BankWest and have BankWest ATMs.
On November 7, a free Slurpee is given to any customer saying Happy 7-Eleven Day to the person behind the counter between the hours of 7 a.m. and 11 p.m. It is unofficially known as '7-Eleven Day (7-11)'.
In August 2008 The Age newspaper reported that 7-Eleven franchisees were suspected of severely underpaying their staff. Fast food and retail workers' union UNITE has claimed that some 7-Eleven workers are paid as little as $9 per hour.
In July 2009 UNITE's claims were proven correct after the Fair Work Ombudsman revealed that random audits had recovered $112,000 for workers in Melbourne 7-Eleven stores and $55,000 for 7-Eleven workers in Sydney.
Currently the Ombudsman is investigating further claims about underpayments at 7-Eleven stores in Geelong.
UNITE has labeled 7-Eleven one of the worst employers in the country.
Japan
Japan has more 7-Eleven locations than anywhere else in the world, where they often bear the title of its holding company "Seven & I Holdings". Of the 34,200 stores around the globe, 12,349 of them are located in Japan with 1,577 in Tokyo alone.
The feel and look of the store is somewhat different from that of the U.S. 7-Elevens. In Japan they offer a wider selection of products and services. Japanese 7-Elevens offer not only food, drinks, and magazines, but also video games and consoles, music CDs, DVDs, digital cardreaders as well as seasonal items
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