Three decades in business is a great milestone for any firm, so when convenience retailer
7-Eleven turned 30 this year there was plenty of reason to celebrate.
Flash back to the 1930s and George Henry Alexander Withers is delivering groceries from his shop around South Yarra in his model T Ford. He would be amazed at how his descendents have built a business with the American brand 7-Eleven, launched in Australia 40 years later.
The Withers and Barlow families wholly own 7-Eleven Stores Pty Ltd and introduced the 24-hour retailing concept to Australia. From the time the first store opened in Oakleigh, Victoria, on 24th August 1977, they have regarded themselves as a pioneering
convenience retailer, growing the business through franchising, innovative products and logistic initiatives. As working hours and urbanisation have increased, so has the need for local stores open all hours and stocking a variety of everyday items that meet the evolving demands of consumers.
Innovations include the frozen carbonated beverage Slurpee and more recently, the new fresh food range, munch. Focusing on meeting customers' needs is what keeps the brand at the forefront of convenience, believes chairman Russell Withers. "For 30 years, we have worked closely with, and continue to work closely with suppliers such as Coca-Cola, Cadbury, Phillip Morris and Dairy Farmers to provide unique, timely and convenient product offerings for our customers. Through our partnership with Swire Cold Storage 7-Eleven has recently been able to launch a successful daily fresh food range, munch. This logistics solution which is unique in convenience allows us to deliver fresh food to every store seven days a week. The munch range meets the growing demand from customers for tasty food that's easy to grab and eat on the go. The consolidated delivery method through our partnership with Metcash has further enhanced operational efficiency, allowing franchisees more time to dedicate to their customers."
CEO Warren Wilmot has some pointers for the future. "7-Eleven will continue to evolve and lead. munch has been a great success, and we are working on an expansion of the range. Slurpee continues to grow, as we continue to provide product innovation and enticing promotions," he says.
The latest development in the company's evolution is a new store blueprint designed to provide a fresher, easier and more appealing environment for customers. The first renovated outlet has just opened in Boronia.
To celebrate the 30th Anniversary, Australian franchisees and guests from 7-Eleven's international markets, gathered in Melbourne in September for a two day conference and celebratory gala dinner. Of the 314 local franchisees 52 have multi-units, including Kamal Sharma, one of the longest serving franchisees in the network with three stores in Queensland: Kedron, Oxenford and Hope Island. Sharma is heavily involved in franchisee interaction and is a member of the 7- Eleven Franchisee Advisory Council and is also a 7-Eleven Super Coach, training new franchisees on best practice.
"When I first started at 7-Eleven, we had a monopoly on trade. There were no other convenience stores and supermarkets had very limited opening hours. On the weekends, we were one of the few shops still open. The major change has been the shift away from being seen as an alternative to actually delivering convenience in every way. Our products and services have evolved — we now provide different product lines including fresh food like munch as well as energy drinks, mobile phone services, iTunes cards and transport tickets. The 7-Eleven system is the best for franchisees. I've done well financially out of owning three 7-Eleven stores — but more than that, I've learnt about budgets, systems, financial management, human resources, retail management, stock control, logistics — and about building and training a great team."
This article appears courtesy of Franchising Magazine.
15-Jan-2008