With high gas prices continuing to impact consumer spend, delivery startups gaining market share, and, well, the fact that it’s the eleventh of July, it’s only appropriate to take a deep dive into the world’s largest convenience chain 7-Eleven.  In today’s Insight Flash, we take advantage of our ability to separate the company’s fuel versus ex-fuel sales to assess performance versus the overall Convenience subindustry, examine how often its customers cross-shop competitors, and look at how demographics differ between the two sides of the business.

Unsurprisingly given how important oil prices are to fuel spend, 7-Eleven’s Fuel business spend growth has tracked the growth of the overall Convenience/Gas subindustry very closely.  With gas prices skyrocketing, fuel purchases at the pump have climbed to 46% of total spend at 7-Eleven in June.  Although this matches pre-pandemic levels, with many commuters still engaging in Hybrid work the high share is more likely due to higher prices per gallon than gallons of gas purchased.  As 7-Eleven has expanded into urban areas, Ex-Fuel spend growth has also been strong, up 37.7% in June versus three years ago.

Subindustry Spend

Note: Fuel spend denotes credit and debit purchases at the gas pump; ex-fuel spend denotes credit and debit purchases inside 7-Eleven convenience stores, which may include some fuel paid for inside

7-Eleven’s gas customers who pay at the pump do also go inside the store for snacks and other items – 30% of fuel shoppers in May also cross-shopped inside the store.  Beyond that, however, they are not particularly loyal.  In May, 25% of 7-Eleven fuel customers also made a purchase at Shell Oil, and 22% also purchased at Exxon Mobil.  For those buying convenience items, only 11% also bought gas from 7-Eleven.  While some stores are in urban areas without fuel pumps, this wouldn’t explain why 27% of ex-fuel customers also made a purchase at Shell Oil and 21% also shopped Exxon Mobil.  Instead, it could be inferred that the food and beverage sold at the convenience store itself are more of a standalone draw than commoditized fuel.

Cross-Shop

Note: Among 7-Eleven shoppers, % also shopping listed brand; fuel spend denotes credit and debit purchases at the gas pump; ex-fuel spend denotes credit and debit purchases inside 7-Eleven convenience stores, which may include some fuel paid for inside

There are demographic differences between 7-Eleven Fuel and Ex Fuel shoppers as well.  Those spending money in the convenience store tend to be younger, with those aged 18-34 accounting for 39% of spend versus 34% for fuel purchases.  Interestingly, 7-Eleven Fuel and Ex Fuel spend show the same distribution across income groups, with higher income shoppers unsurprisingly able to spend more.

Demographics

Note: 91 days ended 6/26/22; fuel spend denotes credit and debit purchases at the gas pump; ex-fuel spend denotes credit and debit purchases inside 7-Eleven convenience stores, which may include some fuel paid for inside

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