LOS ANGELES--(BUSINESS WIRE)--7-Eleven, Inc. today announced that it will embark on an aggressive growth plan in Southern California that will include more than 100 new stores across the region in the next three years. The company also announced that it has hired CB Richard Ellis Group, Inc. (NYSE:CBG) to serve as its exclusive brokerage firm in Southern California, focused on assisting 7-Eleven in expanding its market share.
The planned store expansion will span seven counties: Los Angeles, Orange, Riverside, San Bernardino, San Diego, Ventura and Santa Barbara. The new store investment is approximately $50 million this year and expected to be more than $60 million for 2010.
One of the few retailers currently expanding, 7-Eleven has approximately 800 stores in the Southern California market, and expects to open nearly 50 this year. Twenty 7-Eleven stores were added to this market in 2008.
"We are committed to investing in Southern California through new store development, remodeling existing locations and creating more franchise and other business opportunities," said Dan Porter, 7-Eleven vice president of real estate and new store development. "7-Eleven wants to quickly identify new locations and take advantage of opportunities throughout the region. CB Richard Ellis' extensive network and broker contacts will be important to our success as we enter a period of rapid, new-store expansion."
Typical 7-Eleven stores have 2,400 to 3,000 square feet of selling space, pull traffic from densely inhabited areas with strong daytime population and plenty of traffic generators. "Flexibility" is a significant component in 7-Eleven's growth strategy. The company likes in-line, end-cap space in shopping centers as well as freestanding stores and downtown, urban locations. The company also wants to be part of re-gentrification efforts in neighborhoods where it plans to grow that are undergoing revitalization.
Another part of 7-Eleven's growth strategy is its Business Conversion Program, whereby the company looks for existing independent retail stores that want to convert to the national chain and become a part of 7-Eleven's franchise system.
The company operates, franchises and licenses more than 6,400 stores in the U.S. under the 7-Eleven® brand and opened approximately 170 stores in 2008. This year, the world's largest convenience retailer expects to open more than 200 new stores in the U.S.
7-Eleven, Inc. is the premier name and largest chain in the convenience retailing industry. Based in Dallas, Texas, 7-Eleven operates, franchises or licenses approximately 7,800 7-Eleven® stores in North America. Globally, 7-Eleven operates, franchises or licenses more than 36,400 stores in 15 countries. During 2008, 7-Eleven stores worldwide generated total sales of more than $53.7 billion. For 15 consecutive years, 7-Eleven has been listed among Hispanic Magazine's Hispanic Corporate Top 100 Companies that provide the most opportunities to Hispanics. 7-Eleven is franchising its stores in the U.S., and is expanding through organic growth, acquisitions, and its Business Conversion Program.
CB Richard Ellis Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world's largest commercial real estate services firm (in terms of 2008 revenue). The Company has approximately 30,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CB Richard Ellis offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. CB Richard Ellis has been named a BusinessWeek 50 "best in class" company and Fortune 100 fastest growing company two years in a row.