Dive Brief:
- 7-Eleven is currently piloting an online ordering, delivery and in-store pickup program in select Dallas stores, according to Retail Leader. The c-store company offers hundreds of grocery and nonfood products for purchase through its new smartphone app, 7-ElevenNOW.
- Ten stores are participating in the test program, with more locations to be added in 2018, The Shelby Report notes. The company says this move is part of a host of digital transformations that will enhance the customer experience inside and outside the store.
- 7-Eleven is also expanding its food lineup with a private label selection of sweet breads aimed at Hispanic shoppers. The company currently offers the line at 640 stores throughout Texas
Dive Insight:
7-Eleven, one of the country’s largest convenience store chains, wants to be known as more than just the home of the Slurpee and Big Gulp. It's also rolling out innovative products and services that bring it directly into competition with grocers.
The 7-ElevenNOW app is part of the company’s digital transformation aimed at bolstering store loyalty in the Amazon age, and includes chatbots and a new loyalty rewards program. The c-store operator is experimenting with other technologies including drones, biometrics and peer-to-peer payments. Other services include the expansion of Amazon Lockers so customers can pick up packages at the store, the BillPay app which lets customers with cash pay bills at the convenience store, and the addition of Amazon cash to 8000 locations.
As tobacco and fuel sales decrease, c-stores are expanding their food choices, moving away from packaged Twinkies and stale hot dogs. Many operators have added restaurant-quality grab-and-go food selections. 7-Eleven offers an Asian beef and broccoli bowl at some locations, while customers at industry leaders Wawa and Sheetz can snag a fresh-made macaroni or a spicy chicken salad.
Between 1988 and 2016, convenience stores’ share of grocery sales doubled from 8% to 16%, according to The Food Institute.
7-Eleven's addition of traditional Mexican sweet breads to approximately 640 Texas stores continues this move away from traditional gas station fare while also capitalizing on a very promising consumer segment. According to recent research from Acosta and Univision, Hispanic grocery shoppers are more profitable than U.S. shoppers, primarily due to the frequency of their trips. Over the next forty years, the U.S. Hispanic population is projected to double from a current 54 million.
Smaller, just-in-time trips for fresh food and produce make 7-Eleven and other c-stores an easy alternative to the larger grocery store. If 7-Eleven continues to add products to attract Hispanic consumers, the chain could also make life difficult for some thriving Hispanic grocers in Texas that are looking to grow.
As c-stores flex their muscles, showing they can offer consumers quick visits, tasty food options and convenience, grocery stores are responding, revamping their own grab and go and deli items to better match consumer interests. But convenience stores are, by definition, convenient to get to. With 154,000 locations across the U.S., they are easily on the errand path. And c-stores, like 7-Eleven, are positioning themselves to be strong contenders for the hungry shopper who is in a hurry.