To assist with identifying and securing new sites the Northern California, greater San Francisco Bay, Sacramento and North Pacific areas, the retailer has chosen St. Louis- [image-nocss] based Colliers Corporate Solutions as its exclusive broker.
Nationally, 7-Eleven is projecting an additional 200 stores in its top growth markets across the United States by the end of 2009, 250 more in 2010 and more than 300 to be added in 2011. The growth will come from acquisitions and business conversions as well as developing new locations, it said.
In addition to the more than $50 million for new store growth, the company plans to upgrade and remodel more than 100 stores in the North Pacific region and has tripled the size of its Northern California real-estate team in the past two years to prepare for the expansion.
"We are committed to adding 50-plus new stores to the 500 we already have in 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."
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 Washington state, and has doubled the size of its regional real estate team in the past two years to prepare for the expansion.
Porter said, "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."
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, it said, including end-cap space in shopping centers and freestanding 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."
Porter said, "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. We want to quickly identify new locations and take advantage of opportunities throughout the region[s]."
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, almost 150 stores have been converted, it said.
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.
Dallas-based 7-Eleven operates, franchises and licenses more than 6,300 U.S. stores under the 7-Eleven brand, approximately 7,900 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.
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