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Tag: 7-Eleven

  • Positive result from anti-plastic campaigns by Starbucks, 7-Eleven

    Positive result from anti-plastic campaigns by Starbucks, 7-Eleven

    Starbucks Korea and 7-Eleven Thailand have announced positive results for their respective anti-plastic campaigns. A report revealed that the local Starbucks subsidiary has seen consumption of single-use straws cut by half in the months since introducing strawless lids on drinks without whipped cream or that do not need stirring. The initiative, introduced last November, has resulted in the monthly average of 15 million straws used across its coffee chain stores drop to 7.5 million per month. The company now only provides straws to customers who request them.

    Aiming to further reduce straw usage by up to 70 per cent, Starbucks Korea is planning an online event to offer rewards to customers who upload pictures of drinks taken without using straws. It has also introduced paper straws for usage in some beverages.

    7-Eleven saves 169 million bags

    Meanwhile, in Thailand, more than 169 million plastic bags have remained unused over the past two months at 7-Eleven stores, according to a report in local news site The Thaiger, the result of a management initiative to phase out their use. The move, which has been supported by local celebrities, encourages shoppers to refuse plastic bags or bring reusable bags to the store.

    The reductions are reported to have saved the chain more than 33 million baht, which operator CP All Public Company will donate to a local hospital.

    All about perception?

    Despite these reports, there have been growing concerns among critics in the media regarding the perceived environmental benefits of similar plastics initiatives worldwide.

    The sippy cup lid adopted in Korea is identical to the design used in North American stores, which was shown in a Reason magazine report last year to use more plastic than the previous lid design and straw put together.

    Plastic shopping bag initiatives similar to the one adopted by 7-Eleven have provoked skepticism among observers who point out that of all single-use plastic packaging used throughout supermarkets and convenience stores, the shopping bag is the only item that tends to be reused in the home.

    A 2017 report in Australia’s journalism hub The Conversation called getting rid of plastic bags a windfall for supermarkets without much perceptible benefit to the environment. It reasoned that most alternatives that were recyclable ended up in landfills anyway.

  • 7-Eleven Malaysia appoints Tsai Tzung-Han as director

    7-Eleven Malaysia appoints Tsai Tzung-Han as director

    Convenience store chain operator 7-Eleven Malaysia Holdings Bhd has appointed Tsai Tzung-Han (pix) as a non-independent and non-executive director, effective Jan 16, 2019. Tsai, 42, is currently the vice chairman of Cathay United Bank, a subsidiary of Cathay Financial Holdings which is listed in Taiwan. He also serves as a director on the board of Cathay Life Insurance, the largest life insurer in Taiwan and also a subsidiary of Cathay Financial Holdings.

    Tsai had previously served in various capacities at Cathay Life Insurance, including senior vice president in charge of alternative investments and executive vice president in charge of real estate acquisitions and development, human resources and strategic planning.

    He also ran the strategic planning department for Cathay Financial Holdings from 2010 until 2016 and oversaw the strategic investments into Bank Mayapada in Indonesia, Rizal Commercial Banking Corporation in Philippines and Conning Asset Management in the US.

    He joined Cathay United Bank in 2015 and served as the head of strategic planning until he became the vice chairman in 2016, where he continues to oversee the strategic planning, wealth management, digital banking, data analytics and overseas banking departments.

    Prior to returning to Taiwan, Tsai worked briefly in private equity at Goldman Sachs in New York and in venture capital at Pacific Venture Partners in San Francisco.

    From 2001 until 2003, he was a practicing attorney in the real estate department at Hale and Dorr LLP, currently known as Wilmer Hale, in Boston. Tsai has over 10 years’ experience in investment and business development in finance industry.

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  • 7-Eleven parent sales surges: Report

    7-Eleven parent sales surges: Report

    Japanese retail giant Seven & I has reported a 15.8 per cent increase in net sales for the nine months to November. Profit rose by a less impressive 2.9 per cent. The 7-Eleven parent said its overseas convenience store business achieved an impressive 15.7 per cent increase in operating profit year on year.

    At home, its Ito-Yokado superstore managed to reduce its operating loss to ¥200 million (US$1.85 million), however its York-Benimaru supermarket division and Sogo & Seibu department stores both struggled, the latter losing ¥937 million ($8.6 million).

    Seven & I’s net sales totalled ¥4.11 trillion ($38 billion).

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  • 7-Eleven Malaysia mulls float

    7-Eleven Malaysia mulls float

    The 7-Eleven Malaysia business may be floated. Malaysian businessman Tan Sri Vincent Tan is considering turning over his shareholding in convenience store operator 7-Eleven to his Berjaya Corp Bhd group. Maintaining that the share price of 7-Eleven is undervalued on Bursa Malaysia, Tan claims that the business, currently valued at RM1.43 billion (US$342 million) should be worth more than US$1 billion.

    The chain has 2250 locations within the territory, and according to Tan aims to open at least another 200 stores next year.

    “We are considering maybe sell all my 46 per cent shareholdings in 7-Eleven to BCorp, then let BCorp launch a General Offer (GO), but nothing is firmed yet,” he said.

    The businessman owns 48.33 per cent of Berjaya Corp, which is valued at around RM1.35 billion (US$323 million).

  • 7-Eleven Malaysia eyes 200 new stores next year

    7-Eleven Malaysia eyes 200 new stores next year

    7-Eleven Malaysia Holdings Bhd is looking to expand the number of the convenience store chain outlets by at least 200 new stores next year. In 2017, 7-Eleven Malaysia opened 126 new stores. Berjaya Corp founder and executive chairman Tan Sri Vincent Tan Chee Yioun said 7-Eleven Malaysia is also looking at increasing the number of franchisees for stores in Malaysia, along with the expansion in the number of outlets.

    7-Eleven Malaysia is the largest standalone convenience store chain nationwide with more than 2,250 outlets across the country.

    Its wholly owned subsidiary 7-Eleven Malaysia Sdn Bhd today entered into a memorandum of agreement with Pertubuhan Tindakan Pejuang Wanita Dalam Sosial, Ekonomi, Rumahtangga Dan Ilmu (Tiangseri Malaysia) to provide an opportunity to those interested to be franchisees to enter the ecosystem.

    Tiangseri is commissioned to recruit and recommend up to 50 potential franchisees to 7-Eleven Malaysia in the next 12 months.

    This programme also bodes well with the company’s target of increasing the number of franchisees. The first store under the programme is expected to be opened next month.

    7-Eleven Malaysia CEO Colin Harvey said the franchising programme through Tiangseri will see both partners leveraging on each other’s unique strengths and experience in retail and grassroots franchise recruitment.

    “We are fully focused on this collaboration as we believe franchising is an integral part of our long-term corporate strategy of giving back to the local community that we operate in, as it will both provide and create important life and management skills in future entrepreneurs as well as providing more job opportunities to our local workforce.”

    Harvey noted there are many potential locations for expansion, for instance in Sabah and around the Klang Valley. Meanwhile, Tiangseri president Mastura said the collaboration has already started generating interest from interested parties.

    Tiangseri will also be aiding potential franchisees in securing funding at a preferential rate from agencies such as Perbadanan Usahawan Nasional Bhd and Majlis Amanah Rakyat, among others.

  • 7-Eleven tests facial-recognition technology

    7-Eleven tests facial-recognition technology

    7-Eleven Japan has opened an experimental concept store in Tokyo offering payment through facial-recognition technology developed by NEC. The trial is a precursor to a planned rollout of unmanned convenience stores in locations such as office buildings, car parks and factories allowing consumers to purchase essential items where it may not be commercially viable to operate a full-scale staffed store.

    The test store is located inside a building which is home to companies from the NEC group and can be accessed only by employees.

    Facial-recognition technology identifies shoppers when they enter the store and again when they make payment. The cost of purchases is deducted from their salaries.

    Rival retail groups including Aeon and FamilyMart have already adopted self-service payment checkouts and Lawson is trialling a scheme using barcodes scanned by smartphones.

  • FTC Korea approves convenience stores’ voluntary rules to curb competition

    FTC Korea approves convenience stores’ voluntary rules to curb competition

    South Korean convenience store operators have agreed not to engage in cut-throat competition in the latest move to better protect struggling franchisees. A key centerpiece of the voluntary deal calls for CU, GS25 and 7-Eleven and three other convenience store brands to decide “carefully” over whether to open a new convenience store near an area where a rival convenience store is already located.

    The deal said that convenience stores of rival brands should be at least 50 metres away from each other. Currently, convenience stores of the same brand should be located at least 250 metres away from each other to make sure that they do not compete against each other.

    The latest move came as South Korea has been struggling to protect franchisees in a country where chaebol, or family-controlled conglomerates, have dominated the economy for decades.

    “The voluntary regulation, if implemented in good faith, could help ease saturation and improve management conditions of franchisees of convenience stores,” Kim Sang-jo, chairman of the Fair Trade Commission, said in a signing ceremony of the voluntary deal in Seoul today.

    Last week, President Moon Jae-in instructed the antitrust chief to support a voluntary deal among South Korean convenience store operators so as to address the saturation of the market.

    Convenience stores have sprung up in commercial areas in Seoul and other major cities in recent years, driven by growth of single-member households.

    Last year, the number of convenience stores surpassed 40,000, a dramatic increase from 1989 when the first convenience store opened in eastern Seoul.

    Kim said the voluntary deal could prevent convenience store operators from recklessly opening new outlets in areas where there are already many convenience stores.

  • Restructuring continue benefits 7-Eleven Malaysia

    Restructuring continue benefits 7-Eleven Malaysia

    New store openings are maintaining a modest 7-Eleven Malaysia sales growth rate – but improved margins are driving solid profit improvement. The listed convenience store operator released its third-quarter results on Friday, which showed third-quarter sales growth of 1 per cent and year-to-date growth of 1.3 per cent. But net profit was up 4.1 per cent for the quarter and 13.3 per cent year to date.

    CEO Colin Harvey said net profit grew 27.6 per cent quarter on quarter.

    “However, this is only the first step in the right direction towards where the organisation should be, and there is scope for improvement. I am confident that our strategy roadmap focussed on strengthening the key areas of, assortment, supply chain, operational excellence, store base, and digitally enabling the organisation will bear fruit in terms of financial performance, and overall customer shopping experience.”

    He said the group’s net revenue of RM1.66 billion year to date was driven by growth in new stores and consumer promotion activity.

    Continued store expansion has taken the network to 2259 stores.

    7-Eleven Malaysia expects trading conditions for the next quarter to improve with the anticipated heightened consumer sentiment.

    “We expect to see further improvements in the next quarter by pursuing our core strategy pillars of operations excellence, cost management and commercial innovation,” the company said.

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  • 7-Eleven Korea launches locker service

    7-Eleven Korea launches locker service

    7-Eleven South Korea has launched an unmanned locker service called Seven Locker at two stores in Seoul.

    The initiative is part of the company’s effort to diversify operations and generate more profits for its convenience stores.

    The Seven Locker trial operations started at two stores in Seoul’s Hongdae and Jongno districts, with another eight on track to open by year’s end to better gauge customer response and growth potential. The plan calls for 100 lockers to be placed at 7-Eleven stores across the country in the first half of next year, with the service to be extended to all key stores going forward.

    The lockers will be set up near tourist attractions and entertainment districts where there is demand for such services among locals and foreigners alike.

    The convenience store chain said depending on the size of the space, storage fees will range from 2000 won (US$1.76) to 4000 won for a four-hour period, with users allowed to make payments using their credit cards.

    “The lockers can create more profit for stores, while providing a differentiated service to our customers,” a local 7-Eleven executive said.

  • 7-Eleven Thailand launches delivery service

    7-Eleven Thailand launches delivery service

    More than 3000 Bangkok 7-Eleven stores are offering a courier service and collection point. The new service, which launched on Monday, promises next-day delivery on parcels or letters dropped off at a participating 7-Eleven store prior to 9pm.

    Customers using the service must present their ID then buy an envelope or box to send their goods in, with fees ranging from THB 35 to THB 119 (US$1.05 to $3.58). A flat rate applies across the city, depending on the size of the box or envelope.

    Customers can send goods any hour of the day or night and senders can use 7-Eleven stores as collections points, rather than sending to a street or office address.

    Called the 24/7 Speed-D express delivery service, it is also available at stores in the neighbouring provinces of greater Bangkok, Nonthaburi, Pathum Thani and Samut Prakan.

    The service is a joint venture between 7-Eleven’s parent company CP All and delivery company Dynamic Logistics. All deliveries can be tracked by GPS on the Dynamic Logistics website.

    As well as a growing range of banking services, two Bangkok 7-Eleven stores recently introduced a trial food and coffee delivery service based on the Line messaging platform.

  • WeChat Pay to be ready in 7-Eleven, Guardian Singapore

    WeChat Pay to be ready in 7-Eleven, Guardian Singapore

    Customers of 7-Eleven, Cold Storage and Guardian stores in Singapore will soon be able to pay for purchases using WeChat Pay. The owner of the two retail chains, Dairy Farm Group, has worked with NETS to enable visitors from China and Chinese nationals based in Singapore to use the service from November 1.

    WeChat Pay is currently being trialled at the 7-Eleven and Guardian stores at Changi International Airport and some stores in key tourist destinations in the Orchard and Chinatown districts.

    According to the Singapore Tourism Board, visitors from China increased by almost 13 per cent, from 2.8 million in 2016 to 3.2 million last year. The partnership between Dairy Farm Singapore and NETS together with WeChat will enable Singapore’s largest multi-format retailer to better cater to the growing number of China visitors, by offering visitors a convenient way to pay when they shop in Singapore.

    Head of merchant services at NETS, Alvin Seck, said working with payment partners like WeChat and retailers like Dairy Farm Group enables NETS to roll out new payment services for consumers quickly while minimising adoption costs for merchants.

    “With this partnership, 7-Eleven and Guardian in Singapore along with Cold Storage and Giant can just make use of its existing NETS uPOS terminals to accept WeChat Pay, in addition to NETS, QR, NETS FlashPay, credit and debit payments.”

    To use WeChat Pay for payments, users simply need to scan the NETS QR code on the NETS uPOS terminal.

    Dairy Farm Singapore’s regional finance director, Tom van der Lee said this latest payment mode service is part of the multi-format retailer’s digital-transformation journey in line with the government’s ‘Smart Nation’ drive.

    “More customers are adopting cashless payments, thanks to easier and faster payment transactions with the uPOS terminal plus the convenience of the wide array of payment options to choose from across our Cold Storage, Giant, 7-Eleven and Guardian stores. Cold Storage alone has seen cashless payment increase by 6 per cent and at Guardian by 3 per cent since Dairy Farm Singapore installed 1800 unified NETS POS terminals last year – the single largest deployment by retailer here.”

  • Coffee shop in South Korea start closing down

    Coffee shop in South Korea start closing down

    South Korea’s once burgeoning franchised coffee shop market has reached saturation point – and the fallout has become extreme. According to a report, one in 10 South Korea coffee shops closed their doors last year – the equivalent of more than 1000 stores.

    Lee Kyung-hee of the Korea Business Strategy Institute described the situation as “a coffee war”.

    “While restaurants and even convenience stores are adding coffee on the menu to sell, the coffee war is intensifying as now even offices own espresso machines,” he said.

    Citing local corporate tracker CEO Score, the paper reported that the number of franchisees in Korea hit 87,540 as of the end of last year, based on a list of 118 franchise brands registered with the Korea Franchise Association.

    Of those, 11,198 were coffee and beverage stores, representing the third largest sector of the South Korean franchise market behind convenience stores and fried chicken restaurants.

    South Korea coffee franchises are being hit by convenience stores developing takeaway coffee services at prices as low as 1000 won (US90 cents) in the case of 7-Eleven, or about a quarter of the price of a Starbucks coffee. The country’s 1000+ Starbucks stores are not included in the data because they are company owned.

    Local chains have been cutting store networks and staff numbers to remain competitive.

    Seven-year-old chain Cafe Droptop, which has 240 stores, has cut its employee count by about one fifth. Caffe Bene applied for court protection from bankruptcy early this year having struggled in both its home market and abroad and is closing domestic stores.

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  • 7-Eleven Outlets In Singapore Are Now Lazada Collection Points

    7-Eleven Outlets In Singapore Are Now Lazada Collection Points

    Lazada and Ninja Van have teamed up with the Singapore 7-Eleven convenience store chain to allow online shoppers to designate any of the nearly 350 stores island-wide as collection points. The collaboration will offer the largest network of collection points around Singapore. The new service debuted at 159 7-Eleven stores this week, with a progressive rollout planned for the rest of the store network by the end of the year.

    Lazada and last-mile logistics provider Ninja Van say the new service eliminates the need for a purchaser to ensure someone is home to receive goods bought online. They can nominate any participating Singapore 7-Eleven store as their delivery point upon checkout.

    “More than 35 per cent of Singaporean households have only one or two residents, with close to 25,000 new dual or single person households forming just between 2016 and last year,” said Crispian Leong, Singapore 7-Eleven head of marketing.

    “Most are working during the day, and many may not find it convenient to receive parcels at their office. With close to 350 participating stores islandwide, we are excited that we can partner with Lazada and Ninja Van to offer this added convenience to consumers’ daily lives and online shopping habits.”

    Ray Chou, country head of Ninja Van Singapore, said the problem will address the high number of failed deliveries its partners encounter, “which is disruptive not only for our customers, but for sellers and delivery companies as well”.

    Users of the service will enjoy free delivery, as opposed to S$1.49 for normal and S$2.99 for express drop-off to their homes.

    Pierre de Bellescize, CEO at Lazada eLogistics Singapore, said partnering with 7-Eleven and Ninja Van will bolster the click-and-collect options the company already offers with SingPost’s PopStations, SPH Buzz Convenience Stores and Parcel Santa Lockers located in Condominiums and others.

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  • Ministop South Korea is for sale, rivals compete

    Ministop South Korea is for sale, rivals compete

    South Korean retail operators Lotte and Shinsegae are competing to buy the 21-year-old local subsidiary of Japanese convenience-store operator Ministop.

    Shinsegae and Lotte respectively own rival chains Emart24 and 7-Eleven and are both reportedly seeking to take full ownership of Ministop South Korea. Both companies see the deal as a means to grow their respective businesses in a market where convenience-store penetration has reached saturation point, limiting opportunities for organic network growth.

    7-Eleven currently operates 9535 stores across South Korea and Emart24 3413. The Ministop network numbers just 2535.

    Japan’s Aeon, which owns the Ministop brand, owns a majority 76 per cent of the South Korean business.

    Daesang group owns 20 per cent and Mitsubishi the balance. Aeon has appointed Nomura Securities to find a buyer for the business as it sees little future for the convenience store brand in South Korea, a highly competitive market. Instead, Aeon is looking to Southeast Asian markets for growth, including Vietnam, Thailand and Cambodia.

    Last year, Ministop South Korea sales totalled 1.18 trillion won (US$1 billion), ranking it fourth in revenue terms behind GS25, CU and 7-Eleven.

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  • New CEO boosted 7-Eleven Malaysia profit

    New CEO boosted 7-Eleven Malaysia profit

    7-Eleven Malaysia says its net profit surged 29.4 per cent in the latest quarter as internal reorganisation began to pay off. Net sales inched up by just 0.4 per cent during the same time.

    Incoming CEO Colin Harvey – into the role just two weeks – said while the result was satisfying there is still room for improvement on key metrics.

    “I am confident that a strategy roadmap focussed on strengthening the key areas of assortment, supply chain, operational excellence, store base, and digitally enabling the organisation will bear fruit in terms of financial performance, and overall customer shopping experience,” he said.

    Revenue for the quarter reached RM557.6 million (US$135 million) on the back of new stores and improved consumer promotion strategies. Post-tax profit reached RM13.1 million, up (US$3.17 million).

    Revenue for the first half reached RM1.09 billion, 1.4 per cent against the same time last year, while post-tax profit was up 21.6 per cent to RM3.9 million.

    The company’s board expects trading conditions during the next quarter to improve, with anticipated heightened consumer sentiment. “We expect to see further improvements in the next quarter by pursuing our core strategy pillars of operations excellence, cost management and commercial innovation.”

    At the end of the second half, 7-Eleven Malaysia operated 2241 stores.

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