7-Eleven’s planned expansion into WA a ‘good call, according to Roy Morgan Research

The higher the number of 7-Eleven stores in a location, the higher the convenience store visitation incidence is.

Based on the latest findings from Roy Morgan Research, more than a third (36%) of Australians 14+ pay at least one visit to a convenience store in any given three-month period.

7-Eleven stores are found in vast numbers around metropolitan Melbourne, Sydney and Brisbane, which may account for the fact that a higher proportion of people in NSW, Victoria and Queensland visit convenience stores than those in states where there are no 7-Elevens.

The study noted that Queenslanders are the most frequent shoppers, paying an average of 3.4 visits to convenience stores per three months (compared to the national average of 2.4 visits), the reason being Queensland is home to the highest proportion of convenience store shoppers (47%) compared to NSW and Victoria.

Meanwhile, despite having other convenience stores and milk bars, visitation incidence and frequency is lowest in Western Australia where there are no 7-Eleven stores.

However, with 7-Eleven’s recent announcement that it will be moving into the Western Australian market over the next five years, it will be interesting to see how these statistics look down the track, noted Roy Morgan.

Also interesting is the fact that WA has a noticeably lower rate of frozen drink consumption than the rest of Australia, not what you’d expect from a state with such consistently hot weather.

Warren Reid, Group Account Manager – Consumer Products, Roy Morgan Research said, “whether it’s filling up with fuel or filling up with snacks, a large proportion of Australians would have visited a 7-Eleven at some point in the last three months. That is, unless you fall into the 20% of the population who live in a state where there are no 7-Elevens — in which case you’re more likely to have gone to your local milk bar, supermarket or servo; for example Star Mart or Gull if you live in WA.

“While it may seem unusual for such a large retail chain not to be operating nationwide, it’s no real surprise. The added strain on supply-chain operations alone would be a hurdle for some retailers, and not cost effective. Supermarket chain ALDI is in a similar situation: with stores in the same three Eastern seaboard states as 7-Eleven, they have only recently announced their expansion west.

“WA is obviously new territory for 7-Eleven, which means new franchise opportunities. If it proves successful, we may not have to wait too long before we see a 7-Eleven popping up on Main Street, Adelaide or even Elizabeth Street, Hobart.”