Global convenience giant 7-Eleven has once again backtracked on its efforts to launch stores in the UK market, according to sources.
Better Retailing has discovered the Japanese-owned company, which runs more than 80,000 convenience stores in 19 countries, held separate senior-level talks with groups including Bestway and Morrisons in the past 12 months.
However, it is thought the discussions did not progress further, with 7-Eleven’s parent company, Seven & I, allegedly deciding the UK convenience market is already “saturated”, meaning it would struggle to pick up the sites and market share required to make a UK launch viable.
Parties involved in discussions allegedly also had doubts about the value 7-Eleven could add to their existing businesses and brands.
The company has expressed an interest in re-entering the UK convenience market several times since it sold off all its UK stores to Budgens in 1997.
The latest attempt came as Seven & I worked towards launching in 10 new countries by 2030, with Europe described as a “top priority”.
7-Eleven seeks franchises ahead of UK launch
It is understood the UK was one of 20 countries to be evaluated as part of this plan.
Seven & I said any rollout in a new market would involve “focusing on large metropolitan areas”.
The decision not to include the UK in its expansion plan comes amid an attempted takeover bid of Seven & I by its rival, Couche-Tard.
The Canada-based convenience player trades in the Republic of Ireland through Circle K, but does not have a UK presence.
Often franchisee-operated, 7-Eleven outlets specialise in a model known as ‘true convenience’, which is uncommon in the UK.
Instead of focusing on being “shrunken supermarkets” with large top-up grocery ranges, like Tesco Express or Co-op, 7-Eleven outlets focus on ‘food for now’ (hot and cold food and drinks often prepared in store), which accounts for around 50% of each store’s sales.
Common food-for-now elements in 7-Eleven sites include fountain-dispensed drinks, pizzas, chicken, hot dogs, self-serve milkshakes, coffee, pastries and doughnuts.
Some industry analysts have long proposed the ‘true convenience’ model is needed in the UK, but is held back by supermarket and wholesaler dominance of the convenience channel, and their focus on packaged grocery and snacks.
They proposed that an on-the-go-focused model could cut through the UK’s dense convenience landscape.
Bestway and Morrisons refused to comment when approached by Better Retailing. Seven & I failed to respond.
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