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7-Eleven, Inc. Global Partnership with Retail Solution Creating stores loved by everybody around the world. NEC collaborates as a global partner in business expansion of 7-Eleven.

photo:Mr. Joseph M. DePinto

Mr. Joseph M. DePinto

President and Chief Executive Officer

7-Eleven, Inc.

"NEC is our true partner. They view our business as their business. We hope to continue partnering with them to take our systems to the next level."
photo:Mr. Masaaki Asakura

Mr. Masaaki Asakura

EVP/International and Advisor to the CEO

7-Eleven, Inc.

"Over the years, NEC worked hard as our strategic partner to solidify our business foundation. We will continue working jointly from the early business planning stage to come up with the best solutions. We hope NEC will continue to work together with us wherever our business is, and grow together with us well into the future."

Background

Providing ‘true convenience’

Convenience stores in Japan literally provide ‘convenience’ in all aspects of daily life of the Japanese by selling takeaway lunch boxes, onigiri rice balls, ready-to-serve dishes, bread and various drinks. They also accept door-to-door delivery service orders, public bill payments, offer bank ATM and pre-paid services, and so on.

The ‘7-Eleven’ convenience store business model began in the US in 1927. 7-Eleven, Inc., the US licenser is deploying the Retailer Initiative philosophy and the information system framework inherited from 7-Eleven Japan, its parent company, to manage and support its retail franchisees worldwide.

7-Eleven created the outstanding information system together with NEC, its long-time IT partner, pursuing to properly respond to the varying market conditions of different countries and regions. Concurrently, it paid attention to constructing a reliable and use-friendly system that suited its franchisees globally.

By utilizing this information system, the ever-changing consumer needs came to be accurately grasped. The obtained information could be reflected on merchandising and product development. This meant that the stores had improved their product assortment and were successful in precise product replenishment, thereby always satisfying the most demanding customers.

Consequently, 7-Eleven has come to operate a vast network of 36,842 stores spanning 15 countries, out of which 6,840 are located in North America (US and Canada combined), and 12,459 in Japan (figures from the 7-Eleven Japan homepage, as of Sep 30, 2009).

Positioning of IT

Responding to the ever-changing customer needs

"The mission of 7-Eleven is to ‘respond to the ever-changing needs of the individual customers.’ Today, we are undergoing unprecedented change, and the consumers are looking for value offerings. At the same time, these time-pressed people are after convenient items," says Mr. Joseph M. DePinto, President and Chief Executive Officer of 7-Eleven, Inc., upon evaluating the recent consumer trends.

In order to continually keep up with such move, "We must look at the products in our stores from item to item, remove the slow or non-movers, and replace them quickly with new products. Our business results are also greatly influenced by how robust the IT infrastructure is. In that context, NEC provides us an outstanding system," he praised.

Domestic yet global

Though 7-Eleven's current focus is on global expansion, "the convenience store business is in fact very domestic," notes Mr. Masaaki Asakura, EVP/International and Advisor to the CEO of 7-Eleven, Inc.

As an example 'fresh food', brings about a product image that may vary greatly by location: perhaps prompting the image of ‘rice-balls’ in Japan, but then ‘a cup of freshly-brewed coffee and pastry from the oven’ in the Scandinavian countries, or ‘beef balls and fish balls’ in Guandong.

"In order to maintain a consistent business philosophy and management skills, IT becomes the cornerstone. The process of sales, data analysis, and business process optimization of the supply chain remains the standard procedure in any country. Within that flow, the IT system serves as the catalyst for our strategy, and creates the foundation of our business model. " continued Mr. Asakura.

System Overview and Future Outlook

The most convincing proof, 43 percent sales variance

According to its stance of promoting IT actively and executing the above business strategy humbly, 7-Eleven has established a firm position as the ‘No. 1 Convenience Store’ in many countries.

In spite of such remarkable success, however, "there still is ample opportunity for growth," stress both Mr. DePinto and Mr. Asakura.

In the business expansion movement in China, Southeast Asia, Central America and Europe, "IT system introduction that contributes to sales and growth become indispensable for both new licensees and current franchisees alike. And for them, actual results and success examples serve as the most persuasive factor. When they find out that the average sales of the franchisees that introduced Retailer Initiative went up by 43 percent, they start saying: I want to do that, too," explains Mr. DePinto.

At the same time, 7-Eleven believes that a ‘more simplified and user-friendly system’ leads to stimulate sales growth, since this would create more time for the sales staff to attend to their customers. To this end, Mr. DePinto also commends NEC as a "highly reliable partner that understands such expectations of ours well."

How then does 7-Eleven evaluate and plan to nurture its future relationship with NEC? "Over the 30-year period, NEC and Seven-Eleven Japan have collaborated significantly and increased the level of sophistication. Because of its proven records and success, we selected NEC as our strategic partner. As our strategic business partner, we expect NEC continues to provide us the best solutions and create relationships with our franchisees globally." suggested Mr. Asakura.

Mr. Asakura also added, "We hope to reinforce our partnership with NEC more globally, to provide IT solutions that serve as the fundament of 7-Eleven's Retailer Initiative strategy. NEC would work together with us and as we expand globally, we expect NEC to keep up. So, it's just very simple way to say it, work together. "

The challenge of 7-Eleven and NEC in aggressively expanding into the global market has just begun.

Related Links

Customer profile

7-Eleven, Inc.

Address

1722 Routh St.

Dallas, TX 75201, USA

photo:store
Established 1927
URL http://www.7-eleven.com/