7 Eleven Analysis
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For 62 years, the Southland name united many diverse businesses while preserving our heritage. However, ten years ago Southland began divesting its other operations to focus on convenience retailing and has consequently decided to rename the company 7-Eleven, Inc., better reflecting our business focus. The name is appropriate now because 7-Elevens strategic initiatives have brought about such dramatic changes in performance and culture that the company truly is not the same.
7-Eleven is again raising customer expectations as new information systems enable store managers and franchisees to anticipate customers needs and serve them better. Each day, a network of commissaries, bakeries and distribution centers provides 7-Eleven stores with an unmatched selection of the freshest products, yielding true differentiation. This unique, proprietary infrastructure creates a strategic advantage over competitors and will enable 7-Eleven to produce sustainable and profitable growth over the long term. 7-Eleven will enter the new millennium a transformed company with new business tools and a name that reflects its identity and focus.
7-Eleven, Inc.–known as The Southland Corporation until April 1999–is the worlds largest operator, franchisor, and licensor of convenience stores, with more than 18,200 stores in 18 countries, the vast majority of which carry the 7-Eleven banner. About 2,200 of the outlets offer self-service gasoline, almost all of which is sold under the Citgo brand through a long-term product purchase agreement with Citgo Petroleum Corporation. The companys operations include 5,560 7-Eleven convenience stores in 30 U.S. states and five Canadian provinces. 7-Elevens largest area licensee is Seven-Eleven Japan Co., Ltd., which operates 7,605 7-Eleven stores in Japan and 48 in Hawaii. Other major foreign territories include Taiwan with 1,908 units, Thailand with 1,105, China with 398, Australia with 177, South Korea with 171, Malaysia with 151, and the Philippines with 149. The debt load from a 1987 leveraged buyout led the company into bankruptcy by 1990, which in turn led to a Japanese corporation securing a majority stake in it during 1991. 7-Eleven, Inc. is 65 percent owned by IYG Holding Company, which is in turn jointly owned by Ito-Yokado Co., Ltd. and Seven Eleven Japan.
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