3. Introduction to 7-Eleven Company
• 7-Eleven is a chain of convenience stores in many
countries throughout the world. It is open 24 hours a day
and markets itself as a place to buy items quickly and
close to home. The old days of borrowing a cup of sugar
from your neighbor are long gone. Today, a cook who
finds she is missing an ingredient is much more likely to
run to the local 7-Eleven to purchase the item than to
knock on a neighbor's door. With convenience, of
course, comes a higher price. The groceries, food and
other items at 7-Eleven are often sold at a much higher
price than these items can be found for elsewhere.
4. Introduction to 7-Eleven Continues…
• The 7-Eleven chain began in Texas in the 1920s. The
Southland Ice Corp., a local ice distributor, began to sell
groceries such as milk and eggs along with their ice. They
found they could charge a higher price for these goods
because they were conveniently located. As Southland
realized the value of convenience, they launched a chain of
small grocery stores across the Dallas area. The stores were
open from 7 a.m. to 11 p.m., which gave the store its name.
The chain continued to add stores, and by the 1950s had
more than 100 locations. In the 1960s they began to stay
open 24 hours. Today, 7-Eleven is open 24 hours a day, 7
days a week, with locations all over the world.
5. Pricing Strategy
• Stores such as 7-Eleven are categorized as convenience
stores. They sell products including groceries,
beverages, convenience foods and a small amount of
household items. Because they are located in residential
neighborhoods, they can charge premium prices on
these goods. People will pay this price because
shopping at these stores is quick and efficient, and
saves them a trip to grocery stores, which may be farther
away with longer lines.
6. 7-Eleven Pricing Strategy Continues..
• There is a standard belief that shopping at convenience stores
such as 7-Eleven is uneconomical. Items including milk and
bread may cost 30 to 50 percent more at a convenience store
than they do at a grocery store. If one were to calculate the
total cost of a shopping excursion, including the cost of gas
and wear and tear on a car, shopping at neighborhood stores
7-Eleven is often cheaper than shopping at the grocery store.
This is because of the fact that these stores are purposely
located within neighborhoods and residential areas.
