OPM530

Group Assignment
Retail:7 Eleven

Nama No.matrik Kumpulan

1.

2.

3.

4.
Table Of Content
1.0 Introduction

1.1 Backgrounds of company

7-Eleven Malaysia Sdn. Bhd. is the owner and operator of 7-Eleven stores in Malaysia.
Incorporated on 4 June 1984, 7-Eleven Malaysia has made its mark in the retailing scene and
have been a prominent icon for over 28 years. We are the pioneer and the largest 24-hours
convenience store operator in Malaysia.

Upon achieving its 1,000 mark in stores network, 7-Eleven Malaysia opened its door to local
entrepreneurs through its unique franchising program in 2009. We are the first franchisor in
the local market to offer existing profit-making stores to franchisees.

The single largest convenience store chain with over 1,497 stores nationwide, 7-Eleven
Malaysia serves over 800,000 customers daily. 7-Eleven stores can be found across bustling
commercial districts to serene suburban residential compounds throughout Malaysia, from
petrol stations and LRT stations to shopping malls and medical institutions. 7-Eleven is
Always There For You.

Each 7-Eleven store carries over 2,200 SKUs, including our proprietary brands such as
Slurpee frozen beverages and Big Gulp fountain soft drinks. The variety of services available
at 7-Eleven include the sale of mobile phone reload cards, ink cartridge refill, photocopying,
fax, automated teller machine (ATM) and bulletin board for neighbourhood community
notices.

In 2009, 7-Eleven introduced fresh brewed coffee and other hot beverages together with
packaged fresh food and bakery for the convenience of customers looking for ready-to-eat
hot food. All food items sold in 7-Eleven are certified HALAL and undergo stringent quality
control to ensure tastefulness and freshness.

Being the premier neighborhood convenience store, community building is in the heart of 7-
Eleven’s corporate social responsibility framework. 7-Eleven Community Care is a non-
profit entity set up to implement 7-Eleven Malaysia’s corporate social responsibility and
philanthropic initiatives. We believe in giving back to the society we operate in, with a
commitment to support the underprivileged groups and to sustain environmental conservation
effort at the local community level across all regions.Their vision is to be the best retailer of
convenience .Their mission to consistently serve the changing needs of customers for their
convenience.
1.2 History Of Company

7-Eleven was founded by J. C. Thompson in 1927 as The Southland Ice Company in Dallas,
Texas. Started as an ice vendor, the company eventually began offering milk, bread and eggs
on Sundays and evenings when grocery stores were closed. This new business idea produced
satisfied customers and increased sales, spawning the precursor of the modern convenience
retail concept.

The company's first convenience outlets were known as Tote'm stores since customers
"toted" away their purchases, and some even sported genuine Alaskan totem poles in front. In
1946, Tote'm became 7-Eleven to reflect the stores' new, extended hours - 7 a.m. until 11
p.m., seven days a week. The company's corporate name was changed from The Southland
Corporation to 7-Eleven, Inc. in 1999.

Together with its global licensees, franchisees and affiliates in 16 countries, 7-Eleven
operates over 50,000 stores worldwide.

The first 7-Eleven store in Malaysia was opened in October 1984, in Jalan Bukit Bintang, Kuala
Lumpur. In October 2008, 7-Eleven achieved a milestone opening of its 1,000th store in Bandar
Sunway, Selangor. It is today the undisputed market leader in convenience store chain landscape in
Malaysia.
1.3 Organization Charts

TAN WAI FOON

Chairman

CHAN KIEN
SING
Chief Executive Officer

MOHAMED
HO MENG TAN U-MING
SHAH BIN KADIR
Managing Director Executive Director Director
2.0 Layout Analysis

2.1 Introduction To Retail Layout

Retail layout is allocates shelf space and responds to customer behaviour. The main strategy
is to expose customer to high- margin items. The main objective in allocation of shelf, and
space is to maximize profitability per square foot of floor space.Sales and profitability vary
directly with customer exposure. Power item is item that is frequently buyed,item that
dominate shopping trip.

There are 5 ideas,strategy on how to maximize profitability per square foot of retail using
retail layout strategy. First is locate high-draw items around the periphery of the store. This is
to increase total view of whole retail by customers. They will search for the item. Thus ,
increase their view,sight of whole retail. Second is use prominent locations for high-impulse
and high-margin items. For example,put in front side of the retail and put ‘offer’ tag at the
item. Third is distribute power items to both sides of an aisle and disperse them to increase
viewing of other items. This is to increase area of view that will be covered by the customers
when they search for item. Fourth is use end-aisle locations. Fifth is convey mission of store
through careful positioning of lead-off department .

Another strategy is Retail Slotting. Retail slotting is when manufacturers pay fees to retailers
to get the retailers to display their product in clear view of customers sight. The contributing
factors towards retail slotting is limited shelf space and an increasing number of new products
in the market.
3.0 Current Layout Decisions
4.0 New Layout Designs
5.0 Advantages And Disadvantages

5.1 Advantages

 Promo snack are place in the front of shelf because to help to quickly identity special offer
 Food are place in same rack because it is simple and predictable to navigate
 Help shopper to see great number of items easily
 Magazine rack are place in the front because the shop keepers can keep on eye to the
customer who’s read without buying it first.
 Cooking materials are place in the same shelf
 Dry ingredients are also place in the same place in order to avoid any cooking materials such
as egg or oil split on it.
 Ice cream refrigerator is put next to the slurpee because can reduce wasted place and all
aisles are in same of width.

5.2 Disadvantages
6.0 Conclusion