Oh Thank Heaven: 7-11 Joins the Convenience Store Evolution

 

 

 

Late last month, 7-11 announced the opening of a “lab” or concept store in Texas, not far from where the brand began over 90 years ago.

 

 

You might recall that one b. on brand’s predictions for 2019 (read them here) was that the gentrification of convenience stores would become one of the year’s most interesting retail evolutions, and we were right – except we never expected 7-11 to get in on the action.

 

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7-11 has finally awoken to the possibilities. Evidently, they just took notice that Millennial and Gen Z consumer demand more than just “convenience.”

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Frankly it’s amazing it took this long.

 

Consider that whether it’s the urban corner store with dusty bottles of overpriced liquor, Slim Jims, and baskets of hard-boiled eggs, or the suburban 7-11 with its clusters of teenagers sipping on Slurpees, the ubiquitous corner store simply never felt the urge to innovate.

 

 

At top, many of 7-11’s signature offers remain, albeit housed in more updated vending formats; below, a barista serves “novelty” beverages such as kombucha and sweet tea.

 

But “Oh thank heaven”  7-11 has finally awakened to the possibilities. Evidently they just took notice that Millennials and Gen Z consumers demand more than just “convenience.”

 

In fact, According to a 2017 study by market researcher Maru/Matchbox:

 

68% of US millennials will pay more for organic food

66% will pay extra for sustainable food

 

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In Manhattan’s West Village, the Clover Grocery offers Ossetra caviar and vegan Condoms.

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Nicknamed, “bougie bodegas” (as in bourgeois), the most talked about is in Manhattan’s West Village, where the Clover Grocery offers Ossetra caviar and vegan Condoms. They go great together don’t you think?

 

 

 

Manhattan’s Clover Grocery, just one of several “bougie bodegas,” offers cocktail-themed lollipops; while Bonberi caters to the Gwyneth Paltrow, “Goop” crowd with wellness-focussed meals to “ground, nourish, and heal.”

 

Not far away, Bonberi, which bills itself as a “plant-based bodega”, offers quinoa bibimbap bowls, aluminum-free deodorant, and – because we know you want it – organic sprinkles.

 

It stands to reason that Los Angeles would go gangbusters to do it better, because well, this is California.

 

Back in January, we told you about The Goods Mart in Silverlake. Now comes WeWork’s WeMRKT, which has much the same mission as the now ubiquitous co-working startup, dedicated to products made “by our members, for our members.” Is that exclusive enough?  Look for Barnana, a plantation chip company, Misfit Juicery, made with damaged fruits and veggies, and Sunniva Coffee Company, made with whey protein and coconut oil.

 

Did you just roll your eyes?

 

 

WeWork, the cult-like co-working behemoth has just launched their own convenience store with products “by our members, for our members.” The first outlet opened at the company’s 205 Hudson location.

 

7-11 is certainly the granddaddy of convenience, and while their new concept is neither organic nor innovative, it definitely now may start delivering a more updated version of itself with baked-on-site pastries, Scan-and-Pay technology (They can thank Amazon Go for the inspiration), and the company’s first Laredo Taco stand, featuring hand-made tacos (Laredo was purchased from Sunoco in 2018.)

 

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The question now is: can 7-11 be nimble enough to roll out some or all of these ideas into key markets across the country?

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The Lab concept even boasts what the press release describes as “novelty beverages” on tap: nitro cold brew, kombucha and organic teas (have they been living under a rock?)

 

 

 

At top, the exterior of the 7-11 lab in Dallas, which unfortunately doesn’t scream “innovation” Inside, hot “grab and go” stations including customizable coffee machines.

 

Chris Tanco, 7-11’s executive vice president and CEO boldly proclaimed that, “This lab store is customer-focused and will explore new ideas that weren’t even on the retail radar a few months ago.”

 

We’re not clear whose retail radar he’s describing, perhaps his own if he wasn’t aware of what’s been happening elsewhere in the country.

 

The question now is: can 7-11 be nimble enough to roll out some or all of these ideas into key markets across the country? Back in 2013, the brand attempted a similar relaunch, with a new logo to boot, but we didn’t see any of that put into effect.

 

 

Back in 2013, a prior iteration of a prototype was launched in Manhattan’s financial district, designed by WD Partners in Dublin, Ohio. In our view, a potentially more engaging concept.

 

The truth is, many large corporate brands struggle to put big ideas into action simply because of all the moving parts — which includes getting buy-in from franchisees, vendors, and other stakeholders.

 

Nevertheless, this initial prototype is a compelling opportunity to pilot innovation outside of the boardroom and away from internal marketing assumptions.

 

We’re watching.

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