Background

Rising Demand for Delivery Services Amid Changing Lifestyles and Social Environments.

Based on the development of digital technology and the spread of smartphones and e-commerce, people's shopping needs are diversifying worldwide.

In the United States and Canada, there is an increasing demand for integrated online and offline shopping experiences, particularly in food delivery. Research data shows that "94% of American households are concerned about food price inflation in 2024," ^*1 and "the most important requirements for food purchases are quality first and price second." ^*1 Additionally, "71% of millennials use loyalty programs to save money," ^*2 and "63% are more likely to visit stores with digital offers," ^*2 indicating a shift in expectations for convenience stores and a growing focus on saving money. 7-Eleven has the capabilities to meet all of these needs.

Similarly, in the Japanese market, there is a demand for integrated online and offline shopping experiences, but social issues are more prominent. It is estimated that in 2020, 9.04 million people, including individuals with physical disabilities and elderly people, had difficulty accessing groceries, an increase of 790,000 compared to 2015. ^*3 At 7-Eleven Japan, we want many customers to make use of 7NOW through our "Convenient Delivery" service. In addition to everyday users, more customers who find it difficult to shop in physical stores are also using the delivery service.

Considering this background, we launched our unique delivery service, "7NOW," in the United States in 2018 and in Canada in 2021. In Japan, we began with a pilot project in Hokkaido in 2017, which has since evolved into the current 7NOW service.

• *1 Sources: Numerator, YouGov, McKinsey
• *2 Sources: Numerator, CSNews, Retail Doctor, PYMNTS
• *3 Source: Food Access Map by the Policy Research Institute, Ministry of Agriculture, Forestry, and Fisheries（Japanese）

Solution

Delivery of Ordered Products Shortly After Ordering via a Dedicated App.

7NOW, enabled through our proprietary DX technology, is a service that allows customers to purchase desired products from around 3,000 items equivalent to what is available in physical stores, using a dedicated app for smartphones. Deliveries are made by external corporate partners and store staff, bringing the products to your specified location, such as your home, in about 30 minutes in the United States and Canada and as little as 20 minutes in Japan.

In the United States and Canada, 7NOW is available at approximately 6,500 stores, offering popular food items such as pizzas and Slurpee drinks®, as well as over-the-counter medications and daily necessities. Real time inventory tracking along with substitution features enables offering the right suite of options to the customer. 7NOW operates as a complementary service to physical stores, allowing customers to purchase desired products 24/7 from anywhere. Additionally, the "7NOW Gold Pass" a subscription-based delivery service, which offers various benefits such as free delivery for a monthly fee of $6.95 (and applicable taxes), has been well received by many customers.

In the Japanese market, 7NOW is recommended at approximately 12,000 stores across 16 prefectures, including Tokyo. Utilizing the cloud-based data platform "Seven Central" for real-time inventory synchronization prevents out-of-stock issues after orders are placed. Hot snacks such as fried foods are prepared in-store after ordering, delivering a sophisticated customer experience that many Japanese customers have come to expect.

Result

Further Optimization by Market to Drive Sales Growth.

Since the initial launch of 7NOW, both North American and Japanese markets have seen steady sales growth. The COVID-19 pandemic has further solidified the culture of delivery, creating additional momentum.

In the United States and Canada, 7NOW achieved a 25% growth rate in 2023, generating more than half billion in sales. We aim to reach a sales target of $1 billion by 2025 through various initiatives. For example, we plan to expand 7NOW's product offerings to include items from 7-Eleven, Inc.'s restaurant businesses, such as Laredo Taco Company and Speedy Cafe, to promote fresh food delivery. Additionally, we are focusing on increasing the number of 7NOW Gold Pass members and enhancing their engagement.

In the Japanese market, we have set a sales target for fiscal year 2024 of more than nine times the previous year's sales. We plan to expand the recommended service area of 7NOW to approximately 20,000 stores nationwide in Japan and partner with individual business owners for delivery, covering even more regions. Looking towards 2030, we aim for significant sales growth by developing and selling 7NOW-exclusive products. We also plan to fully launch personalization of our offerings through our loyalty program, “7iD,” providing products and services tailored to each customer's preferences.

Finally, as part of our global strategy, we intend to extend the knowledge and experience gained from 7NOW in the USA, Canada, and Japanese markets to other countries and regions where the service is not yet available, providing more customers with a convenient shopping experience.

• *Content is based on information available at the time of the interview.
• *All images published in the article are owned by 7-Eleven, Inc.
• *The 7NOW app screen in the article differs from the app screen of Seven-Eleven Japan Co.,Ltd.