Eight new stores have opened in Denver, five in Aurora, two in Littleton, one in Centennial and one in Longmont, Colo., according to figures from Dallas-based 7-Eleven.
The seemingly sudden proliferation of a brand that's been around since 1927 is due to the strength in the Denver market and the recession-driven lower cost of capital and tenant [image-nocss] space, spokeswoman Margaret Chabris told the newspaper.
"We're a strong company, and strong companies grow," Chabris said about 7-Eleven, which reached a 40,000-store milestone (surpassing any other company) worldwide late last month. "Properties that we might have been interested in before the recession may have been too expensive. As companies retracted development plans or shortened their leases, that becomes more opportunities for us."
Richard Oneslager, a franchisee who owns five 7-Elevens in Fort Collins and Greeley, told the newspaper Colorado is underserved by convenience stores on a per capita basis.
Nationwide, there are 146,341 convenience stores for a population of 307 million--one store per 2,100 people. Colorado, with a population of 5 million, has 1,763--one per every 2,830 people, according to statistics from the National Association of Convenience Stores.
"The secret with 7-Eleven and why we're seeing such growth now is (the company) has put together such an infrastructure from the delivery and commissary point of view," Oneslager said. That means each retail outlet can offer more fresh merchandise, including sandwiches, salads, fruit and baked goods.
Jeff Lenard, spokesman for the convenience store association, said 7-Eleven's growth also is fueled by the increasing value of convenience in our lives.
"It's one of those things where time has never been more important," Lenard said. "Denver is continuing to expand, and convenience stores are telling customers, 'Give me two minutes of your time, and I'll reward you (with grab-and-go convenience).' "
Denver commercial real-estate consultant Mary Beth Jenkins has been tracking the 7-Eleven surge downtown. She said the new downtown locations are strategically located near office, hotel and residential foot traffic.
"If you have apartments nearby and have hotel customers, that fills the impulse grocery needs," she said. "If you're a landlord with a corner and a tenant who's not paying, why wouldn't you look at a 7-Eleven?"
Is there a danger of over-saturation?
"As long as the density in customers is there through residences, high-rises, hotels or office tenants, downtowns are target-rich," she said.
See a related story about the architecture of 7-Eleven's new Denver stores elsewhere in this issue of CSP Daily News.
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