Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/122387
r e T a i l i n g T o d a y go in, they get their quick bite, lottery, they get their quick fix, and they move on." The company is skilled at moving into new markets, says another observer. "7-Eleven is a very smart company that understands how to be successful in any of the markets it enters," said Arlene Spiegel, a retail and food consultant who heads an eponymous firm in New York City. "Its foray into New York City was done exactly right — no fanfare, no trying to convince anyone that they are better than the local bodegas or drugstore offerings." Other cities are part of this growth strategy too. The company announced in January that it acquired about 140 stores for a presence in San Antonio, a city in which 7-Eleven has not operated since the 1980s. And last year the company moved into Charlotte, N.C., for the first time in years and has also established a base in Cleveland and Milwaukee. Shopping centers do figure in these plans, says Chabris. "The shopping center owners have their own contractors and construction people, so we look to see if we are a good fit," she said. "In Florida 7-Eleven can bring [in] about a thousand customers a day, so shopping center owners "We think there is a place for both bodegas and 7-Eleven. While we may offer some of the same products, we offer a lot that are proprietary to 7-Eleven." 94 SC T / M a y 2 0 1 3 Convenience-store visits grow in 2012 Shoppers are finding convenience stores of items consumers purchased has remained more and more convenient. Visits to U.S. steady throughout 2012 at 3.4 items per convenience stores increased by 4.6 per- visit. Some 58 percent of convenience-store cent in the fourth quarter of 2012 versus shoppers purchased a non-alcoholic bever- the same quarter a year ago, reflecting ages in the quarter, with about a third of positive movement in some key economic consumers buying canned or bottled bever- indicators and lower gas prices, accord- ages and 14.2 percent choosing dispensed ing to the Port Washington, N.Y.–based beverages. research firm NPD Group. The firm reports Alcoholic beverages, tobacco and fresh that monthly visits grew 3.7 percent over food enjoyed the strongest category growth last year as convenience-store shoppers over last year, while lottery tickets and news- made an average of 6.2 visits in a 30-day papers, magazines and books sustained the period. largest year-over-year decline. The amount consumers spent on products "It remains to be seen if this continues per visit increased by 31 cents over the year- and carries on through the coming year," ago quarter. This increase may be attributed said David Portalatin, an NPD analyst. to a combination of inflation and changes in "2013 is starting out a bit challenging for the mix of products, as the average number consumers." like us as tenants, because we bring in new traffic and it improves business for everyone. We're sort of an anchor tenant. We're usually an end cap, so we can provide the ease of entrance and egress for customers. It's all about convenience, so we want to help them get in and out as fast as they can." Polsinelli says the conveniencestore giant should not be looking for shopping center locations in New York City, because the chain is essentially fast-food commuter-oriented. "That's who I think their customer is," she said. "That's who they serve best: the fast-paced New Yorker." Staking claims across New York City will mean in many places an inevitable clash with neighborhood bodegas and mom-and-pops that speak the local language, carry ethnic specialties and know many of their customers on a first-name basis. One Chinatown retailer told the New York City press that the chain's lower prices will hurt, while a Third Avenue store owner calculates the busi- — KR ness he has already lost to 7-Eleven at about 25 to 30 percent. "I think 7-Eleven has it hands down over the bodegas," said Polsinelli. "Having a corporate name behind it like 7-Eleven I think will lend a little more credibility to what's being sold. I mean, with 7-Eleven the sense is that there is a higher standard, and there is a standardization of the process by which they prepare, package and sell their products, as opposed to a bodega. When you have to pick one you're going to eat from, you're going to pick the one you feel safest in." Interestingly, 7-Eleven says it does not view the bodegas as competitors. "We think there is a place for both bodegas and 7-Eleven," said Chabris. "While we may offer some of the same products, we offer a lot that are proprietary to 7-Eleven. And because of our sophisticated retail information systems, we know item by item, store by store every few hours what's selling and what isn't." SCT