The head of 7-Eleven’s Australian operations has flagged major changes to the way its 750 stores look, the products it offers and the number of outlets.
During a KPMG retail seminar, 7-Eleven CEO Angus McKay also spoke about how cost-of-living pressures are impacting consumer spending.
The entire Australian arm of the global convenience giant was sold to its Japan-based parent company for $1.7 billion at the end of last year.
And Australian stores are now looking to Japan for inspiration, where 7-Elevens are at the heart of society and have more than 50,000 outlets offering a wide variety of goods.
“We have been pushing for years to move away from being a pure chip and chocolate retailer,” McKay said on Tuesday.
The head of 7-Eleven’s Australian operations has flagged major changes to the way its 750 stores look and the products it will offer. A 7-Eleven store in Brisbane is pictured
A worker replenishes rice balls at a 7-Eleven supermarket in Tokyo, Japan – the head of the brand’s Australian operations said it has a lot to learn from Japan’s 7-Elevens
Over the years, 7-Eleven in Japan has grown into a franchise that has become part of life, offering affordable food, drinks and daily goods, as well as municipal and delivery services.
Mr McKay said 7-Elevens carries far more fresh food in Japan than in Australia, where it makes up 30 per cent of supply and has room to grow.
“I think this is an incredibly exciting prospect for our customers in terms of what we can do there.
‘Japanese stores… are highly regarded within the global network, the way they present themselves, the store standards, the way they operate is just seamless and we have a lot to learn from them.’
Mr McKay emphasizes that the stores must live up to their brand as convenience stores by providing fast and efficient service. The Nocturnal reported.
He said there is only one about 90 seconds to convince the customer to want to spend their money in a 7-Eleven.
“The customer needs to feel like he’s getting value for the time he spends with us and for his money,” he said.
The boss of the Australian branch also said that the effect of higher prices for goods and services on consumer spending must be factored into 7-Eleven’s future plans.
He said people’s savings have fallen, while interest rates and other expenses have risen.
“It’s the combination of things that has really hurt consumers,” McKay said.
“It’s about low relative real wage growth over time and higher interest rates, and that’s absolutely true [the cost of] utilities, which we don’t talk about enough, which really hurts consumers.”
The entire Australian arm of the global convenience giant was sold to its Japan-based parent company for $1.7 billion at the end of last year. A 7-Eleven store in Tokyo is pictured
Instant cold cooked food in packaging is available for sale at the 7-Eleven store in Tokyo, Japan
He said 7-Eleven’s corporate view is that Australia is “a trust-based market, so every time there was a rate increase, even though it may not have been a substantial hit to someone’s pocket, it was a vote of confidence for the consumer.” .
Mr McKay points out that some car owners are now only filling their fuel tanks to half capacity or even less because of higher petrol prices.
“Two weeks ago, with all the turmoil in the Middle East, which was essentially a two-day dip in oil prices that did result in changes in the pump price… consumers across the board stopped spending,” he said.
“I think that’s a dynamic we have to get used to, news in real time. People are reacting in some pretty extreme ways until things calm down.”