Until the early 1990s, 7-Eleven, Inc. operated as a decentralized retail organization, with a number of store support functions handled in each geographically organized division by a local management team. These included:
- Merchandising
- Promotions
- Point-of-purchase materials
Product managers in the company's Dallas Store Support Center were primarily responsible for developing concepts for new products and services. In the spring of 1992, 7-Eleven created the category management group and centralized the company's merchandising process, with a merchandising department remaining in each division to implement the company's strategy and ensure a consistent message to customers.
During that time, 7-Eleven also embarked on a major remodeling program of its more than 4,000 stores in the United States. The redesigned stores looked dramatically different with:
- Wider aisles
- Brighter lighting
- Standardized signage
- A streamlined, easier-to-shop environment
A major facet of the new, improved 7-Eleven stores® was a new product line-up that included:
- More fresh produce items
- Ready-to-eat foods
- Groceries
- Expanded beverage bars
The first attempt at a store show and sampling event to train field merchandising was started the next year. Held in Dallas, it was called the 1993 Merchandising Personnel Expo. The original intent was to help 7-Eleven field merchandisers become merchandising and training experts so they could more effectively coach store managers and franchisees in their local divisions. The event proved invaluable for teaching store personnel how to adjust to new retailing ideas.
In 1994, the event was renamed the University of 7-Eleven (USE) and expanded to include field consultants and market managers. Corporate staff led breakout sessions to introduce the new ideas and to start to standardize product selection, merchandising and operations. More than 1,200 attended the February 1994 USE in Dallas. During the next four years, the University of 7-Eleven was held once a year in a single city - either in 7-Eleven's hometown of Dallas or in Las Vegas.
Senior management began to see the efficiencies and value of staging a major conference, sampling and show once or twice a year to involve merchandisers and field management. The 7-Eleven management team refined USE offerings over the next few years, expanding the scope of the events and the number of markets in which they are held. Originally staged in a few cities each year, the USE expanded in 1999 to include eight to eleven markets.
Today's USE gives franchisees, store managers and employees a chance to see - and taste - new products that will be available for consumers' ever-changing preferences in the upcoming seasons and the recommended merchandising plan for seasonal and high-potential new products.
Virtual Store
The centerpiece of the USE is the virtual 7-Eleven store -- an actual-size 7-Eleven floor plan built to show how seasonal products are assimilated into the standard store mix. Just as our bakeries ensure consistent quality at 7-Eleven stores nationwide, the mock 7-Eleven store can create a consistent look from store to store, with uniform placement of merchandise.
Participants can walk through a store replica to see merchandising recommendations, seasonal items and new product introductions. Each product section is staffed by local company management who share in-depth product and merchandising information with their audience. Field consultants, responsible for groups of eight to 10 stores, act as "coaches" or teachers in the store and are available to answer questions and explain the rationale for how each section of the store should be merchandised for the upcoming season.
The store set is the best way to display seasonal and new items as they should be merchandised in the store. Items are added and deleted to address current customer needs. For example, the number of groceries may be reduced in the summer when people cook indoors less and expanded in the winter for holiday baking/cooking needs. The beverage cooler changes quite a bit -- with more bottled water, isotonics and energy drinks stocked in the summer and more pure juice items in the winter.
Sampling
The most popular section of the USE is the Sampling Area. New items that will be introduced for the next selling season can be seen and sampled here. This gives store operators a chance to become familiar with new products before their introduction to the stores and their customers. Sampling also gives management staff and product suppliers an opportunity to get helpful feedback on new product development or perhaps hear store-level operational concerns about packaging or new equipment. This face-to-face dialogue also enables store personnel to share their experiences on how their customers are responding to products and services.
Sampling focuses primarily on proprietary 7-Eleven products, particularly new flavors and varieties. Visiting store operators, franchisees and employees can taste a smorgasbord of hot and cold beverages, fresh foods, World Ovens® bakery goods, as well as other selected items. Products sampled at the USE include new items that have high sales potential, are seasonal, unique, have major packaging changes or are exclusive to 7-Eleven, either permanently or for a limited time. Suppliers and category managers are there to receive instant feedback.
Case Studies
Participants also can attend educational case-study presentations at the USE. These best-practice informational seminars are presented by management staff on a variety of topics, like the company's proprietary Retail Information System, quality assurance, product ordering, interactive training and safe food-handling practices.
7-Eleven management realized the USE events brought two-way benefits. Store operators and employees learn ways to best serve their customers and make their stores more profitable by sampling new products before they reach the stores; learning more effective merchandising techniques, and hearing first-hand the category managers' rationale about store-level execution of new products, services and merchandising programs.
Communications/Education
All USE alumni are provided in-depth marketing and merchandising materials, such as rationales and execution suggestions for new products and services, schematics for sections, ordering information and picture-to-set displays.