7-Eleven stores are independently owned and operated yet they trade with a discipline that drives success. The discipline is embedded in the agreement behind the brand. Network-wide discipline will see 7-Eleven beat newsagents when it comes to supplier deals.
Around Australia and across the globe from the consistent shingle in, the brand stands for something, something consumers understand a trust.
7-Eleven has fewer retail outlets than newsagents yet it achieves more in its negotiations with suppliers lottery tickets, transport tickets, FMCG items and magazines. This is why I say 7-Eleven will beat newsagents.
Newsagents are weak because they refuse to work together. Yes there are some groups working together on some products, but not at the level being done in 7-Eleven. This is why we can’t sell mobile recharge for the margin of 7-Elven or sell iTunes cards at the discount offered in 7-Eleven.
Our business model relies on shoppers visiting multiple times a week. Every time one of our shoppers shops at 7-Eleven for a paper or a magazine or a phone recharge is another step they take away from our businesses.
Our strength is the critical mass of our retail network. Our weakness is the lack of discipline – the inability for us to genuinely to work together for the good of the whole – of our retail network.
While this post could be about Coles and Woolworths, I chose 7-Eleven because of their independent ownership and the discipline they demonstrate at the store level. Yes, there are poor stores where discipline is weak. However, I suspect their percentage of the group is far lower than the percentage of undisciplined (selfish) newsagents we have.
Footnote: there are newsagents building strong independent businesses. This post is not so much about you. It is about newsagents who proudly show the newsagent / newsagency / N shingle thinking it, of itself, stands for something.