7-Eleven reveals strategy for entering European markets, including the UK

The parent company of international convenience store chain 7-Eleven is to dramatically increase its presence in Europe over the next six years, with the UK understood to be a target market.

Presentations in Seven & I Holdings’ investor relations day on 23 April show the company is looking to enter 10 new countries by 2030, with Europe described as its ‘top priority’. The presentations also revealed how the company is planning to gain a foothold in these new countries, such as the UK.

The detail follows Better Retailing uncovering late last year that the chain was in talks with potential partners in the UK to act as the ‘master franchise’ holder.

In the presentation, the company said it is targeting to enter two countries every year to hit its expansion targets, with 20 countries to be ‘evaluated’ for their suitability.

Expansion models

Two models are given for its expansion into a new market. The first is a master franchise agreement, where the parent company has ‘no direct involvement’ other than consultation and logistical support. The only revenue for the parent company would be through royalty payments from the master franchisee.

The second is joint ventures and acquisitions, which would see ‘direct participation’ and moving global staff into the new markets to help launch the brand. This model was said to give the parent company a higher income through revenues from stores and dividends.

For both models, the master franchise owner, joint venture partner or acquired firm is expected to already have a network of stores, food production capability and supply chain, significantly limiting the pool of potential targets. The parent company would provide product development, digital tools and ‘retailer initiatives’.

Describing its expansion into new markets through working with existing companies in those regions, the company said it wants to ‘Grow 7-Eleven business rapidly with top performers’.

Globally, there are 84,762 7-Eleven stores, with the company targeting 100,000 by 2030, largely driven by entering new markets.

7-Eleven had more than 50 stores in the UK developed in the 1980’s, but these were sold in 1997, marking its exit from the UK market. Expectations of its return have abounded for a decade, fueled by trademark registrations and comments from its senior team.