Seven & i Holdings Charts a Path Forward

Regarding areas that he would like to change, Dacus highlighted Seven & i's history of being "a bit conservative."

"This has led to us moving a bit slower than we should have and missing opportunities, and it has impacted our ability to execute. This is something I intend to change," he said. "We also need to re-emphasize our focus on the creation of shareholder value. I intend to do this with a much more strategic approach."

A "maniacal" focus on continuously bringing customers better products and services is key to winning in mass market retail, as is execution, he said, adding that the latter requires both speed and discipline.

"If you can't get them into your stores with speed, someone else will do it for you and you'll miss out. By the same token, if you can't roll out a new product or service in the right way at the right time, your customers will be disappointed and you'll miss out."

Finally, Dacus plans to lean into cost control, ensuring that money is invested where customers will appreciate it, as well as global leverage, which will take advantage of the different strengths in Seven & i's varying operating areas, he explained.

"You will see us invest aggressively in new formats and new capabilities to improve the customer experience at existing stores," he said. "I'm really excited about our way forward, and we need to move quickly to make this a reality."

Ups & Downs In North America

7-Eleven stores in North America came in below expectations for the full fiscal year 2024, but the retailer made progress in same-store sales, margin and units, according to President Stan Reynolds. He noted that same-store sales excluding cigarettes turned positive during the fourth quarter; when removing cigarette sales from consideration during the new fiscal year, the company expects to see positive U.S. same-store sales growth in March.

"We've also seen continued momentum in units per transaction and a significant improvement in merchandise margin trends, both in Q4 and year-to-date through February 2025," Reynolds said.

7-Eleven's results, he added, have been impacted by the macroeconomic environment, magnified by recent economic uncertainty around tariffs and immigration policy.

"We're closely monitoring the business and consumer impacts in response to the recently announced tariffs, and this uncertainty has impacted our customer, as we've seen consumer confidence fall to a multiyear low and declining consumer spending, as they try to stretch their dollars, by shifting to channels online and delivery in search of deals and discounts," he continued. "Despite these challenges, we are well-positioned to deliver on the value that our customer is seeking through our key growth strategies."

7-Eleven's key initiatives for 2025 include growing proprietary products; accelerating digital and delivery, with a goal of hitting $1 billion in sales through the 7NOW program; improving efficiencies and cost leadership; and growing and enhancing its store network.

"To accelerate our growth, we've strategically invested in store enhancements and growing our assortment. This includes investing in our food and beverage modernization program that offers our customers a wide assortment of baked in-store and hot food items and specialty coffee," Reynolds said. "We're expanding this program with an additional 400 plus installs in Q1 of 2025 on top of more than 2,100 installs last year."

Last year, 7-Eleven launched 215 new private label items across high-growth categories. The company plans to add an additional 200 items this year.

"Our restaurant portfolio continues to serve as a key differentiator and provides us another opportunity to deliver value that resonates with customers. With more than 1,100 locations across three brands, we're able to meet the ever-changing taste of our customers, and the benefits are meaningful," Reynolds added.

Stores with restaurants drive 57% more traffic, 36% more average per store per day sales and carry an additional 30 basis points of margin compared to nonrestaurant locations.

Finally, 7-Eleven is implementing its new store standard. The retailer plans to build 550 new stores between 2025 and 2027, with a focus on its new food-forward standard stores.

"We'll continue learning from these stores and refine our new store standard to meet the needs of consumers, both now and in the future," Reynolds said.

Seven & i subsidiary 7-Eleven Inc. operates, franchises and/or licenses more than 13,000 stores in the United States and Canada. In addition to 7-Eleven stores, it operates and franchises Speedway, Stripes, Laredo Taco Co., and Raise the Roost Chicken and Biscuits locations.