7-Eleven raids Trader Joe’s playbook in last-ditch attempt to save its US business after axing 400 stores
Gas pumps are out, and gourmet snacks are in at 7-Eleven.
After shutting 444 ‘underperforming’ stores across the US, Canada and Mexico last year, the world’s largest convenience chain is ditching its traditional gas-station playbook.
Instead, it is pivoting hard toward freshly-made meals and high-margin own-brand snacks, borrowing tactics from Trader Joe’s and Aldi.
The shift comes as Americans buy less gasoline, thanks to more fuel-efficient engines and the rapid rise of hybrid vehicles.
For decades, a large share of 7-Eleven’s profits from its 13,000 North American stores came from gas as well as from drivers grabbing sodas, snacks and cigarettes while filling up their tanks.
Last year’s store closures weighed on profits, but the company’s parent, Seven & i Holdings, says a plan to switch focus is working. On Thursday, it raised its full-year profit forecast after stronger-than-expected third-quarter revenue.
It is moving away from low-margin, heavily branded products — and even gas itself — to focus on better-quality own-label food the company controls from start to finish.
That is very much the playbook Aldi, the fastest growing supermarket chain in the US, and Trader Joe’s. Both have seen great success from primarily selling own-brand food.
7-Eleven was forced to shut 444 ‘underperforming’ locations across North America last year
The chain is now prioritizing freshly made meals and exclusive products rather than big brands
A significant portion of 7-Eleven’s revenue came from drivers picking up snacks, drinks, and cigarettes while filling their car with gas
Own-brand offerings are far more profitable than packaged snacks, soda, and gas — which are all heavily branded and have far lower margins.
With a heavily-branded candy bar, for example: 7-Eleven has to buy the product and pay a wholesale cost to the owner, and it can’t raise the price too much because shoppers will compare its tag with other stores.
Meanwhile, if 7-Eleven make its own candy bar, it can design, source and price the snack themselves — there’s no middleman taking a cut.
Selling own-brand has been central to the business model of Trader Joe’s since the grocer’s early days.
Founder Joe Coulombe launched the first private-label product in 1972 to undercut competitors’ prices: a bag of granola.
The company then shifted its focus to concentrate on unique private-label items. It got rid of many national brands to maximize limited shelf space in its small stores.
Similarly, Aldi has always focused on private labels, but in late 2025 it took a step further by launching its most significant rebrand by putting the Aldi name on packaging
In many ways, this is simply 7-Eleven borrowing from its own roots overseas.
Selling own-brand has been central to the business model of Trader Joe’s since the grocer’s early days
Aldi has always focused on private labels, but in late 2025 it took a step further by launching its most significant rebrand by putting the ‘Aldi’ name directly on their products
Japanese 7-Elevens don’t have gas stations, so they had to compete on food alone
Japanese customers trust the quality of 7-Eleven’s offerings because there is no gas station stigma to beat, as there is in the US
Japanese 7-Elevens don’t have gas stations, so they’ve had to compete on food alone, meaning that customers trust the quality of the chain’s offerings. There is no gas station stigma to beat, as there is in the US.
A major part of why 7-Elevens profits rose substantially this year is because the chain’s Japanese stores did so well.
Now, the chain intends to invest profit from across the world — especially Japan, where profit growth is solid enough that the company has extra cash — into the US market.
There has also been changes in leadership. Longtime US CEO Joe DePinto stepped down at the end of 2025, but no successor has yet been named.
At the same time, the group is preparing its North American convenience-store business to stand alone, laying the groundwork for a separate public listing.
That would turn 7-Eleven’s US arm into its own publicly traded company, allowing it to raise capital independently and be valued on its own merits.
