Despite recession, 7-Eleven is opening hundreds of new stores
Filed under: Company News
Amid recessionary closings and dire, apocalyptic mutterings, 7-Eleven, the world's largest chain store, has announced plans to open 200 more locations this year. While the company is building across the country, its two biggest areas of expansion will be California and the New York metropolitan area.Both areas are well-primed for this move. In New York, falling real-estate values have made long-term leases very attractive to landlords, and many have been eager to strike bargains with the company. In one case, a landlord who was previously charging $140 per square foot dropped his rate to $91. Also appealing, the chain's quality control ensures that the stores are clean and well-run, in stark contrast to many of the bodegas and corner delis that currently function as the city's informal food-distribution network.
In a larger context, however, 7-Eleven's popularity reflects some hard recessionary truths. While the chain charges more than most grocery stores, its convenience makes it ideal for consumers who may be trying to save money by underbuying during their visits to the market. Beyond this, of course, the company's selection of bargain-priced convenience foods makes it a compelling alternative to fast food franchises and traditional restaurants.
Still, old habits die hard, and 7-Eleven faces a strong small-market culture in both of its major expansion zones. It's particularly notable that 20 of the chain's proposed 44 store openings in New York will actually be "business conversions," wherein an existing proprietor transforms his convenience store into to a 7-Eleven. The company invests approximately $280,000 per conversion, in return for 25 percent of the store's profits.
7-Eleven is only the latest in a long series of companies that are using the recession as a tool for broadening their reach. Bargain-priced department stores, notably Kohl's and H&M, have all taken advantage of newly-accessible real estate and penny-pinching consumers to launch major expansions. Kohl's, for example, is on track to open 50 new stores in 2010, while H&M continues to expand worldwide.
With disposable income at a premium and real estate at a discount, it looks like the recession may transform the face of American consumption. As in the case of Wal-Mart, it's worth asking if a price-sensitive population can go back to its previous habits. Perhaps more importantly, will it want to?
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Retail Stores Closing Their Doors
7-Eleven is growing despite the recession, but many other retailers are closing stores. Click through the gallery to review the latest store closings.
Candice C. Cusic, Chicago Tribune / MCT
Candice C. Cusic, Chicago Tribune / MCT
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Reader Comments (Page 1 of 5)
7-15-2009 @ 4:23PM
algon said...
Most people seem to be in a 7-11 for cigarettes, coffee, etc., but maybe they could expand on the dollar store concept, so more people would shop them for paper towels, etc.
Reply
7-16-2009 @ 12:46AM
Richard said...
yes I agree with you
7-15-2009 @ 4:30PM
marshall said...
7 elevens are clean they have sandwiches that have more meat than Subway. Prices of things like cigarettes are actually cheaper than news paper stands and grocery stores. The one near my job and the one near my house have very friendly employees.
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7-15-2009 @ 5:18PM
Cj said...
That Great No more Bonus this Quarter Maybe they show think about going back a redoing alot of their older store in stead with things get old people tend to go elsewhere
to the nicer stores
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7-16-2009 @ 12:38AM
Bergie said...
It'd be alot easier to understand your message if you used English. I can't tell if you're pro 7-11 or con 7-11. Maybe you could re-submit your comments in legible, well-thought out things called "complete sentences".
7-15-2009 @ 5:47PM
Patriot said...
They are mostly owned by foreigners who get a "break" from our government and pay no taxes for 5 years! Then they "sell" it to one of their relatives who then pays no taxes again and the one who sold it becomes an "employee" ! I would never shop there after learning this! I go to WAWA . All americans working there. No "breaks" for americans!
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7-15-2009 @ 6:51PM
kd said...
patriot, i work for a 7-11 and have done so for 3 years and is owned by americans and every employee i have had have been american so maybe you shouldn't be so narrow minded and fast to assume its all that way.
7-15-2009 @ 9:03PM
calvin said...
WAWA??? 0.0 never heard of that
7-15-2009 @ 9:30PM
layla said...
these orchids are owned by all white people but the only ones picking our fruits and vegatables are mexicans
7-15-2009 @ 11:10PM
Diane said...
Too bad there are not more americans who have that kind of loyalty to their country. I also do not give any of my hard earned money to companies that are as anti american as 7-eleven.
7-15-2009 @ 8:12PM
HGinMN said...
I lived in FL for the first 37 yrs of my life. 7-11s have been around since I have. I moved to MN 2 yrs ago and they don't have any here that I've found (they left the state years ago for some reason my MN native husband explains but that I can't remember.) I miss Crystal Light Slurpees.
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7-15-2009 @ 9:44PM
jim said...
Same happen here in Des Moines about 10 years ago, I thought the whole chain went under. They must have had a problem with the midwest
7-16-2009 @ 4:55PM
Misty said...
When I moved to Jacksonville, FL in 1989 there were a few 7-11s, but then they all closed. The nearest 7-11 is near Daytona Beach. Being from Norfolk/Va Beach, I grew up on them and it was horrible living without a slurpee! We're in south GA now and there are not any here either.
7-15-2009 @ 8:17PM
Michael said...
All of the 7 Elevens in and around Sioux City, IA (Where South Dakota, Nebraska and Iowa Meet) turned into Kum N Gos 10-15 years ago. I have not seen one since. My fondest memories of them were paying 2-3x the normal price for bread, taking it home, and finding out it was OLD. That's what I call High Priced C**p.
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7-15-2009 @ 8:37PM
ANDREW said...
Quik trip will put them out of business nationwide
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7-15-2009 @ 8:48PM
libby said...
one word- SLURPEES!!!!!!!!!!!!!
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7-15-2009 @ 8:42PM
Rich said...
Does anyone at AOL proof read this material before it is posted? The Rite Aid and Costco comments under the photos are jibberish. And why not put some date on this stuff so we know when these things were said or reported.
Hogwash all these things posted with no review or edit and no dates applied to anything. Some of this junk is 8 - 9 months old. Really timely AOL
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7-15-2009 @ 8:49PM
Rich said...
Does anyone proof read any of this junk before they post it? Comments under the Rite Aid Photo and the Costco Photo are jibberish. And how about putting some dates on these things AOL? Some of this nonsense you think may be current is 8 - 9 months old. Nice going AOL...real professional..shape up will you please!
Reply
7-15-2009 @ 8:54PM
Jerry said...
I don't buy gas at 7-11 . I want my money to stay in the USA
Reply
7-16-2009 @ 4:21AM
Sheila said...
I hate 7 11 because every one I've ever been in was run by the foreigners who killed the towers on 9 11.