Labuga, Danielle Bernadette U.

BSN 4A2-3

MARKETING HISTORY OF 7-ELEVEN Etymology

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, the name Tote'm was changed to 7-Elevento reflect the stores' new, extended hours7 am until 11 pm, seven days a week.[7] The company's corporate name was changed from "The Southland Corporation" to 7-Eleven, Inc. in 1999. HISTORY The company originated in 1927 in Dallas, Texas, when an employee of Southland Ice Company, John Jefferson Green, started selling milk, eggs, and bread from an improvised storefront in one of the company's ice houses. Although small grocery stores and general merchandisers were present in the immediate area, Joe C. 'Jodie' Thompson, Jr., the manager of the ice plant, discovered selling convenience items, such as bread and milk, was popular due to the ice's ability to preserve the items. This significantly cut back on the need to travel long distances to the grocery stores for basic items. Thompson eventually bought the Southland Ice Company and turned it into Southland Corporation, which oversaw several locations which opened in the Dallas area. In 1928, one of the managers brought back a totem pole from Alaska and placed it in front of his store. Due to the attention received by the totem pole, additional totem poles were placed at each of the store locations and all of the stores began operating under the name "Tot'em Stores" (a word play on the totem poles as well as the idea that customers "toted"

(carried) away their purchases). In that same year, many locations also began selling gasoline. Although the Great Depression caused the company to go bankrupt in 1931, it still managed to continue operations. In 1946, in an effort to continue the company's post war recovery, the name of the stores was changed to 7-Eleven to reflect their hours of operation7 am to 11 pm, which at the time was unprecedented. By 1952, 7-Eleven opened its 100th store. It was incorporated as Southland Corporation in 1961. In 1962, 7-Eleven first experimented with a 24-hour schedule in Austin,Texas after an Austin store was forced to remain open all night due to customer demand following a University of Texas football game. By 1963, 24-hour stores were established in Fort Worth and Dallas, Texas as well as Las Vegas, Nevada. The Southland Corporation in the late 1980s was threatened by a corporate takeover, prompting the Thompson family to take steps to take the company private by buying out public shareholders in a tender offer. In 1987, John Philp Thompson, the Chairman and CEO of 7-Eleven, completed a $5.2 billion management buyout of the company his father had founded.[10] The buyout suffered from the 1987 stock market crash, and after failing initially to raise high yield debt financing, the company was required to offer a portion of the company's stock as an inducement to invest in the company's bonds.[11][12] Operating in this period with exceptionally high interest costs, the Company, now private, encountered financial difficulties with the high debt load, and as part of the restructuring, sold various divisions, such as ice division and Chief Auto Parts - an auto parts franchise, which was acquired by Southland in 1979 to provide the convenience of a 7-Eleven store, was divested in 1990 to General Electric and later purchased by AutoZone. In 1998, the company was rescued in bankruptcy by the Japanese corporation Ito-Yokado, its largest franchisee. This downsizing also resulted in numerous metropolitan areas losing 7-Eleven stores to rival convenience store operators. The Japanese company gained a controlling share of 7-Eleven in 1991,[7] during the Japanese asset bubble of the early 1990s. Ito-Yokado formed Seven & I Holdings Co., and 7-Eleven became its subsidiary in 2005. In 2007, Seven & I Holdings announced it would be expanding their

American operations, with an additional 1,000 7-Eleven stores in the United States.

7-ELEVEN OUTLETS AROUND THE WORLD Australia-598 China-970 Hongkong-9500 Indonesia-128 Japan-15, 258 Malaysia 1,742 Macau -45 Philippines-893 Singapore-560 South Korea-7,064 Taiwan-4,567 Thailand-7,210 Sweden-189 Denmark-196 Norway-162 Canada-484 Mexico-1,552 USA-8,114 Philippine Seven Corporation (PSC) was registered with the Securities and Exchange Commission (SEC) on November 1982. It acquired from Southland Corporation (nowSeven Eleven, Inc.) of Dallas, Texas the license to operate 7-Eleven stores in the Philippines in December 13, 1982. Operations commenced with the opening of its first store in February 29, 1984at the corner of Kamias Road and EDSA Quezon City, Metro Manila. Considering the countrys economi c condition at that time, the Company grew slowly in its first few years of existence.

At year end, PSC is operating 551 stores, 211 of which are franchise stores, 130 stores are operated under a service agreement, and the remaining 210 are company-owned stores. The store franchise and service agreements have a minimum term of 5 years each, renewable for a similar term. The stores under franchise and service agreement are indicated in the store list provided in the discussion of Leases herein. Currently, PSC considers three major competitors in maintaining its leadership in the Convenience Store (C-Store) Industry. There are a number of other small players including gas marts, but their store count and sales volume as a group by itself is not significant to be considered. PSC concluded in August 2009 a non-exclusive tie-up with Chevron Philippines Inc. and opened 25 7-Eleven Stores in certain identified Caltex gasoline stations. The Company continues to sustain its leadership by putting stores in strategic locations, carrying product assortment fit for such market.