Eleven | Path to Purchase Institute (2024)

Must-Know Terms

• Slurpee: 7-Eleven’s proprietary frozen beverage; the most popular flavors are produced by top beverage manufacturers.
• Big Gulp: The retailer's fountain service offers beverages from national brands in a variety of sizes: Gulps (20 ounces), Big Gulps (30 ounces), Super Big Gulps (40 ounces) and Double Gulps (50 ounces).
• 7Rewards: Since its launch as acoffee loyalty programin 2014, 7Rewards has gradually expanded to let shoppers earn a free proprietary beverage of any size after their sixth beverage purchase, and points redeemable for food and drinks. For the most part, shoppers must be 7Rewards members to redeem offers in stores and enter sweepstakes.
• The Brainfreeze Collective: A research community of about 250,000 (and growing)members who have opted in. The group takessurveys and offers feedback on in-store and online products and experiences. It's available to 7Rewards account holders who are residents of the U.S. and at least age 13.
• 7NOW: The retailer's in-house delivery app. 7-Eleven projects 7NOW to grow to $1 billion by 2025. The first-party platform's best-sellers are the chain's hot food offerings.

Thought Starters

• Look for ways to tie your brand to 7-Eleven's fresh food offerings and private label products, which are often cross-promoted with national brands.
• Help the c-store chain better capture affluent Millennials as it works to expand its reach with that demographic.
• Think exclusive. Products exclusive to 7-Eleven always get the most attention in stores, on the 7-eleven.com home page and on the retailer's mobile application.
• Help the c-store chain continue to engage its younger, tech-savvy customers and build its digital strategy, especially through social media and its mobileapp.

Promotional Strategy

7-Eleven focuses much of its promotional activity on its private-label portfolio with limited-time Slurpee flavors, the expanding 7-Select line, Big Bite, Big Gulp and coffee.

Most of the year, the chain executes fun programs around its iconic Slurpee beverage and works with leading vendors to run a variety of account-specific promotions and one-off sweepstakes.

In 2024, 7-Eleven and The Tetris Company collaborated to celebrate the 40th anniversary of the Tetris game. Customers who buy qualifying products (including Slurpee drinks and Red Bull products) at participating locations get a chance to win one of 20,000 limited edition Tetris handheld gaming devices shaped like a Slurpee. (Loyalty members get extra entries when they shop.) The collaboration includes limited edition co-branded merchandise such as retro T-shirts, hoodies, hats and more. 7-Eleven Canada is also holding the contest, with 1,800 handheld games up for grabs when buying participating products from brands such as Coca-Cola and Gatorade.

For summer 2023, 7-Eleven launched a new omnichannel campaign, "Anything Flows," which includes:

• Slurpee's new look and new snack flavors,
• "Anything Flows," a song by rapper Flo Milli, with a video developed by Dentsu,
• A chance to be featured on an "Anything Flows" remix,
• Opportunities to winSlurpee-inspired jewelry by designer King Ice, and
• Being an extra in a music video produced by multi-media company Lyrical Lemonade.

7-Eleven works with leading vendors to execute a variety of account-specific promotions, and has shown a willingness to support the launch of new products — especially if it can do so exclusively.

Ongoing Programs

• 7Rewards: The retailer’s mobile application allows shoppers to scan a barcode at checkout to earn 10 points for every dollar spent, which can be redeemed for free snacks and drinks. Members also regularly receive limited-time deals including discounted or free drinks. Users can earn bonus points by purchasing select SKUs or playing games within the app.
• Bring Your Own Cup Day: To kick off summer, aka "Slurpee season," participating 7-Eleven locations invite customers to bring a container (that is clean and fits under the drink dispenser) and fill it for $1.99. For 2023, BYOC day featured a new, limited-time flavor, Fanta Dragon Fruit Zero Sugar.
• 7-Eleven Day: The retailer typically gives out small Slurpee drinks free in stores on its “birthday” on July 11, aka 7/11. For 2023 it's holding what it calls a triple celebration: A chance at three free Slurpees. Anyone still can order a free Slurpee on July 11, but 7Rewards members will also be able to claim a free drink from July 1-10. Customers who order viathe 7NOW Delivery program can get a free Slurpee on July 8. The retailer also haslimited-edition flavors, $1 food deals, and new private label snacks.

Merchandising Strategy

7-Eleven has operatedunder a merchandising strategy known as "First, Best, Only" (FBO), through which the company strives to be thefirstto market with a product, offer thebestversion of a product or be theonlyretailer to stock the product.

The chain's product strategy has traditionally encompassed a typical c-store plan of serving as a fast, simple option for cigarettes, beer, soda and snacks, with the average store carrying about 2,500 SKUs. This strategy has also positioned 7-Eleven as an acceptable alternative for the "emergency" purchase of packaged foods, cleaning supplies, pet food, OTC medications and automotive needs, among other categories.

It also periodically invites CPG brands to apply to its Brands with Heart program, for an opportunity to be sold in 7-Eleven stores.

The average 7-Eleven has:

• beverage coolers along the back perimeter (which accommodate back-stocking from walk-in refrigerators),
• snack foods in center-store aisles (sending shoppers through some of the ancillary categories to meet their actual destination),
• cigarettes stocked behind checkout in a sizable wall unit,
• a coffee bar near the back of the store, or sometimes in the center,
• a Slurpee machine and Big Gulp carbonated beverage fountain (7-Eleven's best-known private label) along the store's perimeter,
• newspaper and magazine racks along the front window, and
• fresh food items (including prepared sandwiches, donuts and fruits) in freestanding and counter displays and coolers located along the store's perimeter.

Over the years, the chain has focused more of its efforts on changing traditional consumer perceptions about the channel — a place for stale coffee and day-old hot dogs — and establishing itself as a legitimate destination for fresh food and drinks. The retailer has added more gourmet, organic andbetter-for-you snacksas well aspremium wines.

7-Eleven is refreshing its coffee options, adding more bean-to-cup coffees as well as specialty and iced offerings to more than 4,800 stores by the end of the first quarter of fiscal 2023, with plans to continue expanding. It's also adding more baked goods and grab-and-go cases.

A concept store in New York’s Lower Manhattan emphasizes healthier options such as bananas and apples (found within aisles under signage that reads “Fast Fruit”) over the microwavable products and large cups of soda the chain is known for.

The c-store chain also adjusts its fresh-foods and private-label offerings based on the location of the store. For example, Cuban-inspired meals have made an appearance in Miami stores.

Many stores also sell 7-Eleven merchandise, including T-shirts, ball caps, can coolers and more.

Apollo Global Management's Redbox DVD rental kiosks also are found in many stores.

7-Eleven recently deployed a range of solutions fromJDA Software, Inc.to manage its inventory and streamline its supply chain processes.

Collaborative Alliances

7-Eleven regularly teams with top manufacturers in the beer, soft drinks, snacks and candy categories for one-off sweepstakes and promotions (oftentimes involving the retailer’sBig GulpandSlurpee). The retailer’s overwhelming prominence in the c-store channel makes it attractive to vendors, which typically provide a steady stream of account-specific promotions and products.

The most consistent of the chain's vendor alliances involves the Slurpee, the flavors of which are often provided by top beverage manufacturers such as Dr Pepper Snapple Group, PepsiCo and Coca-Cola Co. Some flavors, like Coca-Cola’s Coca-Cola, are mainstays while others are rotated out. Exclusive, limited-time flavors produced by these beverage manufacturers are promoted in stores through translite signs on Slurpee machines and on 7-eleven.com via display and carousel ads.

Beyond the Slurpee station, 7-Eleven is generally marketing at least one additional exclusive product, often from PepsiCo or Coca-Cola. Exclusive products get the most attention in stores and online. The chain is also open to working with soft drink vendors to pair their beverages with the retailer'sprepared food offerings.

Prospective vendors can share information about their products with the retailer's category managers viarangeme.com/7-eleven.

In-Store Media

7-Eleven does not accept much third-party in-store media. Stores on average only carry digital monitors, usually found behind the register, that have directional audio and content customized to the local environment.

Store Formats/Growth

Average square footage: 2,400 to 3,000

Most stores are open 24 hours, seven days a week (although the company retains the name it adopted in 1946, when stores operated from 7 a.m. until 11 p.m.). Stores are generally located in urban and suburban locations within high-traffic areas such as major intersections and busy strip malls.

7-Eleven's main goal chain wide is to offer shoppers a convenient, safe and clean environment, although the objective is met to wildly varying degrees depending on each store's age, location, traffic flow and, perhaps most importantly, operator. In the past, the company has helped franchisees improve lighting inside and outside of stores in addition to modernizing signage and installing canopies over gasoline pumps.

After piloting a store refresh in the Louisville area, which included improvements to store exteriors, additional training for workers, a merchandise reset and an increased focus on local products, the c-store chain plans to continue with the refreshes at 4,000 stores by the end of 2024.

Speedway Deal

7-Eleven’s growth strategy focuses on new store openings,acquisitionsand conversions of existing independent convenience stores or related businesses to the 7-Eleven banner. Most recently, the retailerentered in to an agreement to acquire Marathon Petroleum Corp.'sSpeedwaychain for $21 billion in the summer of 2020. The 3,900 Speedway stores that are part of the deal will give 7-Eleven a bigger footprint in the Midwest and East Coast (where Wawa is a big competitor) and a presence in 47 of the top 50 most populated metro areas in the U.S.The deal would also bring 7-Eleven’s retail footprint in the U.S. and Canada, currently at about 9,800 stores, to around 14,000 locations.

Evolution Stores

7-Eleven has taken steps to move away from the simple "co*kes and smokes" reputation convenience stores get by rolling out unique store concepts. Most recently, 7-Eleven has opened a handful of "Evolution Store" concepts in cities includingDallas, New York and Washington, D.C. Equipped with a taqueria and growler station as well as new technology, these Evolution Stores serve as real-time experiential testing grounds where customers can try the retailer’s latest innovations in new store formats.

Licensed Restaurants

7-Eleven Canada has put more focus on fresh and prepared foods, and as part of that strategy it opened two licensed locations in Ontario — Leamington and Niagara Falls — in late 2022 and the first half of 2023. The restaurant format has a dine-in area, and customers can order wine and beer as well as an assortment of foods that are made in-store daily, prepared locally and delivered fresh each day, or traditional 7-Eleven fare such as pizza and Big Bite Hotdogs.

International

In early 2024, parent company Seven & I Holdings opened atest store outside of Tokyo that is nearly twice the size of a typical 7-Eleven and carries double the number of products. The pilot includes approximately 2,000 items not usually found at other 7-Eleven outlets in Japan, including fresh fruit, baby products, cosmetics and a larger cafe menu. After observing which products perform the best in the first half of 2024, the retailer plans to open a second location within the next year.

Customer Segments

The stereotype of the c-store shopper as a young male holds true at 7-Eleven, where most shoppers are men between 18 and 34 years old. According to pricing information company Perfect Price, 7-Eleven shoppers spend an average of $18 per price and nearly half of all purchases are less than $10.

In recent years, 7-Eleven representatives have expressed interest in capturing more affluent Millennials. Hoping to widen its customer base, the c-store chain is very active on various social media platforms (see “Social Media Strategy”) and has even created a new concept store inManhattanaimed at attracting Millennial and female shoppers.

Internet Marketing Strategy

Much like its marketing strategy in general, 7-Eleven's digital efforts are almost entirely devoted to promoting its private-label products. National brands are typically only highlighted on either 7-eleven.com or slurpee.com (or in some cases both) when they provide products or sweepstakes exclusively to the chain.

On 7-eleven.com, home page carousel and display ads regularly tout 7-Eleven’s proprietary products but sometimes highlight national brands if exclusive products or account-specific promotions and sweepstakes are involved. Beyond the home page, ads for national brands are scarce on 7-eleven.com. The only page national brands may be mentioned would be within the retailer’s “Eat & Drink” page where exclusive offers and products are highlighted.

National brands are also featured on 7-eleven.com/slurpee, which spotlights national brands if they provide Slurpee flavors. Coca-Cola and PepsiCo are among the typical beverage manufacturers that provide exclusive flavors in stores.

Elsewhere, the chain has tested displays ad on Pandora Internet radio to promote the Slurpee beverage and direct users to the nearest store. The retailer has also uses display ads to spotlight its proprietary offerings on various local and national news web sites.

7-Elevenredesigned its websitein 2017, putting a greater emphasis on its freshly prepared foods, financial services and private label products.

Retail Media

7-Eleven's retailer media network is called the Gulp Media Network. The network uses its first-party data garnered from its 7Rewards and Speedy Rewards loyalty programs to deliver targeted messages. The network has also partnered with IRI to mine the retailer's first-party data to understand information such as basket size and purchase frequency.

The network was introduced at the 2022 P2PI Live event.

7-Eleven also has Gulp Radio, an in-store radio network. Currently it's in 2,000 stores, but 7-Eleven plans to add it to the entire network of 13,000 North American stores, which would make it the largest radio station in the United States.

Trends Report

For the past five years, brand marketers have been asked to rate various retail media platforms for thePath to Purchase Institute’s annual Trends Report. The 2024 Trends Report is the first to include 7-Eleven’s Gulp Media Network. It ranked best on targeting effectiveness, with 78% of respondents giving it a “good” score or higher. Those surveyed thought its data sharing could use a bit of work, however. (See chart below.)

Social Media Strategy

7-Eleven is increasing its investment in influencer marketing as it adopts a new social mediastrategy focused on amplifying fan-generated content in the hopes of boosting social followers and engagement as well as connecting with Gen Z.

As part of that strategy, the retailer produced a music video for an ode to 7-Eleven's nachos that a band jokinglyposted on Instagram.

For 2022, the retailer staffed a“Superfan Influencer” team to help promote game-day essentials forfootball season — with help from three established influencers in the sports world: the National Football League’s Dallas Cowboys quarterback Dak Prescott and Pittsburgh Steelers wide receiver John Sherman "JuJu" Smith-Schuster, as well as sportscaster Erin Andrews (each with more than a million social media followers). The Superfan Influencerteam continued co-creating social content with 7-Eleven through 2022. Each superfan received training, a $11,000 signing bonus and additional spending money to try and share the “latest and greatest” products from the retailer.

Facebook:3.3 million followers (as of April 2023)
7-Eleven posts weekly on its main Facebook page. on both its main Facebook page and its Slurpee account (boasting 3.9 million followers as of April 2023). While posts on Slurpee's page have tapered off, typical posts on 7-Eleven's account remind consumers of national brand promotions and new menu items. The convenience stores lists some products on its Facebook page, which redirect to 7collection.com.

X, formerly known as Twitter:175.9 k followers (as of April 2023)
7-Eleven uses its main X account to tout campaigns and promotions, and plug its proprietary products with one-liner statements, such as "take a deep breath and a Big Gulp." Occasionally, 7-Eleven uses the account to share the same information as its main Facebook page.

It also ran a separate X account for its Slurpee private label with 25.6k followers (as of April 2023) to drive consumer engagement and spotlight new flavors and promotions. The account has not had any new posts since December 2021, however.

Instagram:912k followers (as of April 2023)
7-Eleven posts a few times a week on its Instagram account to share pictures of shoppers, highlight its proprietary beverages and private label products, and plug promotions. New and exclusive products from national brands also get the spotlight via Instagram posts. Its Slurpee private label has its own Instagram feed, with 240k followers as of April 2023. Typical posts include pictures of the frozen drink or suggested flavor combinations.

YouTube:8.01k subscribers (as of April 2023)
Videos are posted a few times a year to tout sweepstakes, new products and services, and the benefits of working at the chain or running a 7-Eleven franchise.

TikTok:249.2kfollowers (as of April 2023)
The retailer launched a TikTok account in August of 2020. The retailer posts several times a week. Content typically features merchandise or promotions. Short videos show how-tos like a gingerbread latte hack, or how the zodiac signs snack and sip at 7-Eleven.

E-Commerce Strategy

7-Eleven first began dabblingwith e-commerceon a largely promotional basis — testingdrone deliveryand selling Slurpee-branded apparel and merchandise on thenow defunct slurpeeswag.com— and today offers on-demand ordering from more than 90% of its footprint through a combination ofits own and third-party fulfillment services.

7-Eleven has also deployed itsmobile self-checkoutsystem to more than 3,000 locations. The app-based service lets shoppers avoid thecheckout counter by using a mobile device to scan and pay for products (anything except age-verified items)and is connected with the retailer's loyalty program. The retailer plans to roll out the system toall of its U.S. stores by the end of 2022.

7NOW

7-Eleven operates itsownmobile applicationto power delivery and pickup of all store merchandise across some 2,000 stores, typically within 30 minutes. The service is dubbed7NOW.

Fulfillment Partners

• Uber Eats offers delivery of food and beverages including alcohol.
• Grubhub
• Instacart offers 7-Eleven products in the majority of its U.S. markets.
• DoorDash
• Postmates
• Google
• Favor (owned by H-E-B and only available in Texas)

In the past, 7-Eleven alsopartnered with San Francisco startupTapingo.

Amazon

7-Eleven hasfully embraced Amazonas an ally, letting shoppers fund theirAmazon accountsfrom its brick-and-mortar locations and offering selectproprietary SKUsfor purchase via Amazon. The partnership letsthe retailer:

• sell its private label SKUs to shoppers in markets with no 7-Eleven location,
• leverage Amazon's Prime loyalty program to glean the increased sales that come from free two-day shipping, and
• strengthen its relationship with Amazon, which for some time has had digitally enhancedlockersin some 1,800 7-Eleven stores.

Autonomous Pilots

In partnership with Uber-backed food technology startup company Serve Robotics, 7-Eleven is piloting self-driving robot delivery in Los Angeles. When customers make a qualifying order via the 7NOW delivery app, it alerts them that their order may be delivered by a self-driving robot; they are expected to meet the robot outside and use a code to retrieve their orders from the unit.

In 2021, 7-Eleven launchedautonomous delivery in Mountain View, California, via robotics company Nuro. Shoppers in the service area can place orders through the retailer’s 7NOW delivery app to have their products brought to them by a Toyota Prius equipped with Nuro’s self-navigation technology. 7-Eleven plans to expand the pilot to introduce R2 bots, Nuro’s autonomous robots that are custom-built to transport products and goods without any occupants in the vehicle.

SNAP EBT

DoorDash users can use their Supplemental Nutrition Assistance Program Electronic Benefit Transfer (SNAP EBT) benefits at more than 100 7-Eleven locations nationwide.

Circulars and Publications

7-Eleven currently does not distribute any circulars, although it has experimented in specific markets in the past.

Loyalty Programs

7-Eleven launched its digital7Rewardsdigital beverage rewards program in early 2015, offering a free 7-Eleven beverage of any size after the sixth Slurpee, coffee or Big Gulp purchase.

By early 2024, its loyalty program had nearly 100 million members and undergone some changes.

Both 7Rewards and the 7-Eleven app let customers get savings and exclusive deals, and earn points through qualifying purchases, which can then be redeemed for free snacks and drinks. (Members also get a free Slurpee during their birthday month.)

Each dollar spent on qualifying items (fuel, age-restricted items and services are not included) earns 10 points. Other ways to earn points include using the app's 7-Eleven Wallet or mobile checkout, purchasing Bonus Points SKUs and playing AR games.

Members can use their account for savings on fuel, which get them 11 cents off a gallon of gas for their first seven trips, and 5 cents a gallon savings after that.

Loyalty members also can enter contests and sweepstakes. In 2024, 7Rewards and Speedy Rewards members who buy participating products could win a year's worth of tickets (awarded in the form of $3,000 in LiveNation eGift Cards) for concerts, sporting events and more. Buying participating products (including Ghost Energy, Red Bull, and Trolli) earns extra entries.

The convenience store chain also operates a 7-Eleven Universal Fleet Card. Only available to companies, the credit card lets cardholders earn rebates on gas purchases at about 2,600 7-Eleven fuel locations nationwide.

Cause/Community Programs

7-Eleven partners with the nonprofit Conservation International on projects based on reducing its carbon footprint and helping the communities where the retailer operates. It began devoting 1% of its operating net income to these causes in 2017.

The retailer's community-focused initiatives include:

• Operation Chill: The community outreach program empowers local law enforcement officers to give "tickets" to kids they observe doing good deeds or exhibiting positive behavior. The ticket is a coupon for a free Slurpee. In 2023, the program debuted at Speedway. For 2024, the 29th year of Operation Chill, 7-Eleven plans to issue more than 550,000 coupons to more than 1,300 participating U.S. law enforcement agencies. Historically, more than 24 million Operation Chill coupons have been distributed.
• Project A-Game: Franchisees and corporate store managers contribute to local schools and youth sports organizations through grants.
• VetRewards: Partners with Veterans Advantage to offer special perks to U.S. military veterans via the 7Rewards loyalty program. Veterans receive 800 points when signing up and 1,000 points for every $10 spent using the 7-Eleven app. They also receive a free coffee or Slurpee when they use the app on Memorial Day, the 4th of July or Veteran's Day.
• Children's Miracle Network Hospitals:7-Eleven and Speedway teamed with designer The Shoe Surgeon and nine college football athletes to create custom cleats for the retailer's inaugural Cleat Crew program. Each Thursday throughout the 2023 college football season, a pair of cleats will be revealed on 7-Eleven's Instagram page. The next dayfans can begin bidding on CleatCrew.7Collection.com. Proceeds benefit the Children's Miracle Network Hospitals. Loyalty program members can also enter for a shot at collaborating on a custom shoe design or winning a pair of limited-edition sneakersby scanning their rewards app or buying participating Slurpee, Big Gulp, Big Bite and Red Bull products.

Advertising Strategy

The convenience store chain has long been known for the "Oh Thank Heaven for 7-Eleven" tagline, but in recent years it's rolled out new campaigns, particularly "Take it to Eleven."

In 2024, 7-Eleven rolled out the latest iteration of the award-winning "Take it to Eleven" promo. The campaign focuses on the thrill customers get when they get a good deal and in the joy of celebrating the little things, specifically scoring 7-Eleven staples such as Big Gulp drinks or Big Bite Hot Dogs. The spots — which are running in select markets through January 2025 in 15- and 30-second television ads and 10-, 15- and 30-second radio spots, out-of-home marketing, paid social, search and display, and streaming audio and video — highlight deals exclusive to 7Rewards loyalty members.

The spots can also be viewed on the c-store's YouTube channel

Otherwise, 7-Eleven's primary advertising objective is to tout its fresh-food offerings, private-label items and promotions.

For summer 2023, 7-Eleven unveiled an "Anything Flows" omnichannel campaign that includes four spots, directed by Adrian De Sa Garces, which feature new cup designs and focus on fan favorite flavors. Anything Flows merchandise, including bucket hats and T-shirts, is also available.

Regionally, 7-Eleven employs some TV spots, but local radio is far and away the medium of choice. Radio spots highlight typical 7-Eleven offerings as well as national brands like Hershey's Kit Kat and Mondelez International's Wheat Thins.

Solution Providers

• Lead Creative Agency:Deutsch, New York
• Creative/Media: 360i, New York
• Strategic Media Buying: Camelot, Dallas
• Public Relations: Ketchum, New York
• P-O-P Production: Imagine Print Solutions, Minneapolis
• POS advertising: Neptune Retail Solutions, Jersey City, N.J.
• Ready-to-eat foods: Warabeya Nichiyo Holdings, Tokyo

Sponsorships

7-Eleven has periodically sponsored various events and organizations that attract a younger demographic, such as musical festivals including the annual Vans Warped Tour and the short-lived Identity Festival. The retailer has additionally partnered with amusem*nt park operator Six Flags to offer Slurpee beverages at parks.

The c-store chain also has a long history of race-car-related sponsorships. Most recently, 7-Eleven partnered with AmeriGas to be the primary sponsor of the Go FAS Racing No. 32 car driven by Boris Said in the NASCAR Sprint Cup Series. The retailer ended its long-running sponsorship of Indy Racing League driverTony Kanaan.

7-Eleven additionally leverages the sponsorships of manufacturers such as PepsiCo (NFL, NASCAR) and Coca-Cola (World Cup, NBA, NCAA).

Marketing Expenditures

As a private company, 7-Eleven does not release marketing expenses. However, Kantar indicated the retailer spent $4.5 million on media during the first quarter of 2021, more than doubling spend YOY.

Metaverse

7-Eleven's U.S. unit is dipping its toes into the metaverse. In 2023, to mark its 96th birthday, the retailer offered a digital collectible. Consumers could visit 7-Eleven's website or app July 11-18, mix their own virtual Slurpee, then mint and claim it as a digital collectible that they could then save to their digital wallet. Those who took part in the promotion also won extra sweepstakes entries for a chance to win 7-Eleven-inspired jewelry designed by King Ice.