Seven-Eleven’s new business format, “SIP Store”

Assortment of Fresh and frozen food is comparable to supermarkets. Behind this new format launch, there are the increasing trends of ‘cooking retirement’ and the ‘time-saving/effortless for cooking ‘ generation of dual-income households.”

On February 29th, Seven & i Holdings unveiled a new concept store under the name “SIP Store” in Matsudo City, Chiba Prefecture, as part of their initiative to create new group synergies within the Seven & i Group. The store, formerly known as “Seven-Eleven Matsudo Tokiwadaira Station Front,” has been renovated and reopened with the new concept.

The President of Seven-Eleven Japan, Fumihiko Nagamatsu, stated, “SIP Store will be a store that embodies the synergy within the group. Combining the expertise gained by Seven-Eleven over the past 50 years in convenience store operations with the strengths of various group companies, including Ito-Yokado, this store aims to demonstrate the synergy that arises from such collaboration.”

He further remarked, “In the midst of the COVID-19 pandemic, the shift in work styles, and the recent inflation trends over the past six months, the landscape of our times has undergone significant changes. In response to the evolving nature of this era, we aim to expand our knowledge and express the future-oriented concept of stores, considering the way forward for the next generation.”

In August 2022, Seven-Eleven Japan (SEJ) and Ito-Yokado (IY) established the “SEJ-IY Partnership,” commonly referred to as SIP, with the goal of maximizing synergy in areas such as mutual supply of goods and services, collaborative sales promotion through mutual customer referrals via apps, and store operations.

The “SIP Store,” leveraging the strengths of the Seven & i Group, is positioned as a test store incorporating the group’s insights into products to adapt to rapidly changing consumer behaviors, values, and a wide range of needs amid significant environmental changes. Moving forward, they plan to continue the validation process and are considering expanding test stores to locations with different market characteristics.

Keisuke Yamaguchi, the Head of Labo Store Planning Department and an executive officer at Seven-Eleven Japan, stated, “The average daily sales at Seven-Eleven have been around 700,000 yen over the past 20 years. However, there are still untapped needs, and by leveraging resources from Ito-Yokado, including Loft and Akachan Honpo, we believe there is room for further growth. The essence of SIP Store is to explore the next generation of Seven-Eleven, considering synergy with various business companies. Despite prior reports suggesting a new business format or a mini-supermarket, the concept is not about that. Instead of expanding this store to multiple locations, it serves as a store for experimenting with initiatives validated here and expanding them,” explaining the role of the experimental store.

The store area of Seven-Eleven Matsudo Tokiwadaira Station Front has expanded to approximately 290 square meters, roughly twice the size of a standard Seven-Eleven. The number of items available for sale is around 5,300, with approximately 3,300 items from existing Seven-Eleven products and about 2,000 items leveraging products from the group, including Ito-Yokado, Loft, and Akachan Honpo.

Source: Seven & I holdings Press Release Feb 27th, 2024 , Ryutsu biz Feb27th 2024