7-Eleven(R) to Increase Store Growth in Puget Sound Area by 2011
Colliers Corporate Solutions Chosen as Exclusive Broker to Deliver New Store Locations in Pacific Northwest
December 09, 2009 // Franchising.com // SEATTLE – 7-Eleven, Inc. plans to add approximately 15 new stores in the Puget Sound area by the end of 2011, after opening one store in the area in each of the last two years. The convenience retailer has selected St. Louis-based Colliers Corporate Solutions as its exclusive broker in the North Pacific for this development project and to assist with adding 50 stores in Northern California.
Nationally, 7-Eleven® is projecting an additional 200 stores in its top growth markets across the U.S. by the end of this year, 250 more in 2010 and more than to be added in 2011. The growth will come from acquisitions and business conversions as well as developing new locations.
In addition to the close to $10 million the company will spend for new store growth, 7-Eleven plans to upgrade and remodel five stores in the Evergreen state, and has doubled the size of its regional real estate team in the past two years to prepare for the expansion.
"We are committed to adding at least 60 stores to the 625 we already have in the North Pacific area that includes Washington, Oregon and Northern California," said Dan Porter, 7-Eleven vice president of real estate and new store development. "Our development plan will bring more commerce and tax revenue to the area through the construction of new sites, remodeling existing stores and providing more franchise and employment opportunities.
"Colliers' local market intelligence and experience in high-volume development will be vital to our success as 7-Eleven enters a period of rapid, new-store growth in its top markets," Porter added. "We want to quickly identify new locations and take advantage of opportunities throughout the region."
At a time when most retailers have halted expansion or are contracting, 7-Eleven continues to grow. The current initiative builds upon the company's opening of 170 new stores in 2008. As it expands, the company will pursue numerous types of real estate development in both urban and suburban locations, including end-cap space in shopping centers and free-standing stores. The company also wants to be a part of urban renewal in its growth markets.
"The conditions of the retail real estate market are creating great opportunities for retail users who are currently growing their portfolios," said Greg Schuster, senior vice president of Colliers Corporate Solutions. "The success of the 7-Eleven brand and operating model are very attractive to property owners."
A new facet of 7-Eleven's growth strategy is the Business Conversion Program (BCP), an opportunity for existing independent retail stores to convert to the national chain and become a part of 7-Eleven's franchise system. Since the program's inception in 2006, close to 150 stores have been converted. There are a number of businesses in Washington that are becoming 7-Eleven stores through the conversion program. The first BCP for this area is expected to open by spring of 2010.
Typical 7-Eleven stores range from 2,400 to 3,000 square feet in size, are located in densely populated areas with strong daytime traffic and multiple business and/or residential properties nearby. "Flexibility" is a significant component of 7-Eleven's growth strategy. The company looks for anchor space in shopping centers (with or without gasoline service capabilities), free-standing, downtown, walk-up and urban locations 7-Eleven also wants to be a part of re-gentrification/urban development in neighborhoods where it plans to add stores.
7-Eleven, Inc. operates, franchises and licenses more than 6,300 stores in the U.S. under the 7-Eleven® brand.
About 7â€‘Eleven, Inc.
7â€‘Eleven, Inc. is the premier name and largest chain in the convenience retailing industry. Based in Dallas, Texas, 7-Eleven operates, franchises, or licenses more than 7,900 7-Eleven® stores in North America. Globally, 7-Eleven operates, franchises, or licenses approximately 36,900 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.
About Colliers Corporate Solutions
Corporate Solutions is a division of Colliers Turley Martin Tucker, which has consolidated its ownership structure with Cassidy & Pinkard Colliers, Colliers Pinkard, and Colliers ABR, forming a holding company that is one of the largest commercial real estate service firms in the U.S. In 2008, the consolidated entity completed more than $9.2 billion in worldwide transactions, including over $3.5 billion in capital markets transactions, and managed more than 350 million square feet of real estate. The Corporate Solutions division supports more than 22,000 locations for Fortune 1,000 companies and delivers a new location "Every 80 Minutes." Colliers International is ranked as one of the 2009 World's Top 100 outsourcing service providers by International Association of Outsourcing Professionals, IAOP Top 100.