encies include: differentiated merchandising strategy; optimum use of the retail information system; managed distribution; providing a convenient shopping environment; and, having a differentiated franchise model ("Annual Report" 2).
7 Eleven's differentiated merchandising strategy is based on selling items that are not found at traditional convenience stores, including fresh produce in many locations. In addition, store managers and franchisees are expected to monitor their store's performance in order to stock those items that are particularly popular in a particular region. The company also uses its considerable buying power to obtain favourable pricing; this, in turn, is passed onto customers who are able to pay competitive prices while still enjoying the convenience of the 7 Eleven concept. The company also recognizes that petrol sales are a key element to increasing the foot traffic in stores, and has set as its goal selling fuel at most of its new locations in the United States and Canada ("Annual Report" 2).
7 Eleven was among the first convenience store chain to implement a system-wide integrated retail management system. Much of the system was adopted from the company's Japanese licensee--and largest shareholder--and the system provides store managers to monitor their inventory levels, identify trends--seasonal and otherwise--and eliminate slow-moving items from inventory. At the same time, store managers and franchisees are able to identify regional items that might perform well, and can target their merchandise to specific geographic locations. In addition, the system allows for centralized order processing which streamlines the process and also provides greater efficiencies, freeing the store managers to focus on inventory management rather than the inventory process ("Annual Report" 2).
Managed distribution refers to the company's use of regional distribution centres that serve more than one store in an are...