Park Se-won, head of the development strategy team at 7-Eleven, explained the background of the New Wave Origin (hereafter New Wave) store when he met with ChosunBiz on the 14th. Launched in October last year, New Wave is a food, fashion, and beauty fusion store that breaks away from the existing convenience store model. So far, four stores in Seoul and Daejeon have transformed into New Wave stores.
Park said, "In September last year, we tried various approaches to create a new model to attract MZ generation (born between the early 1980s and early 2000s) customers in a 70-pyeong basement store in the Dongdaemun Dondon Building. We condensed this down to a size of about 30 to 35 pyeong to make it applicable to regular stores, which is New Wave," adding, "The name was selected through an internal recruitment process and means 'the start of a new change.'"
As the convenience store industry has already entered a saturated state, 7-Eleven, ranked third in the industry, has launched a counter-offensive with a new store model. Instead of blindly increasing outlets, it has opted to enhance the efficiency of existing stores. In the first quarter, total domestic convenience store sales decreased by 0.4% compared to the same period last year. This is the first time since statistics were compiled in 2013 that quarterly sales have recorded a negative growth. The total number of stores has also decreased.
Although competitors are operating specialized stores, developing a scalable outlet model that can expand nationwide is a differentiated step for 7-Eleven, according to Park. He noted, "We started with the goal of creating a store that competitors will feel tense about," and added, "New Wave is an experiment aimed at improving franchise revenue while simultaneously transforming the brand image."
The New Wave store is distinctive from the exterior. The design utilizing the three colors of the 7-Eleven logo won the grand prize at the K Design Awards, recognized as one of the top three awards in Asia. The interior is designed to maximize customer attraction. Diverse menus, such as instantly prepared food 'Food Station', pizza, chicken, and marble ice cream, are prominently featured. On one side, K League and KBO jerseys and collaboration goods, as well as popular overseas beauty products, are displayed.
Park commented, "We combined product categories that are hard to find in convenience stores, shedding the old image and transforming it into a space that is favored by the MZ generation." In fact, sales among the 20s and 30s generation are reportedly about 20% higher than at regular stores.
Consumer reactions were immediate. Sales at the New Wave stores increased by 1.5 to 2 times compared to before reopening. Specialized category sales, including food, alcoholic beverages, desserts, and fresh products, have increased from at least 2 times to as much as 15 times. 7-Eleven plans to selectively expand the New Wave model in regional hubs.
Park stated, "The evaluations of the New Wave stores are positive from both inside and outside the industry. Because of the sophisticated interior, many customers specifically seek out this store compared to nearby stores," adding, "Our goal is to expand the New Wave model primarily in core commercial areas and regional hubs." The following is a Q&A.
―What is the planning background and goal of the New Wave model?
"We first opened the New Wave in October 2024. The existing convenience store model had limitations in differentiation. During the remodeling process of a 70-pyeong underground store in the Dongdaemun Dondon Building in September last year, we conducted various experiments. This was compacted into a model that can be applied to regular stores, sized at 30 to 35 pyeong. The name was selected through an internal recruitment process and carries the meaning of 'the starting point for a new change.'"
―What differentiates it from existing stores?
"The biggest feature is the enhancement of 'food.' We operate a 'Food Station' that offers instantly prepared foods like pizza, chicken, sweet potato, fish cakes, and marble ice cream. We have also expanded the fashion and beauty categories. The interior was transformed with the 'young and beauty' concept and won an award at the K Design Awards. The overall store design, including colors, logos, and lighting, was renewed to refresh the old image."
―What is the background for enhancing food, fashion, and beauty?
"We determined that it would be difficult to compete with only traditional convenience store product categories. We introduced differentiated food items like pizza, Dipndots marble ice cream, and shrimp balls that aren't available in other convenience stores. In the fashion sector, we offer items like hoodies, socks, and underwear, while in beauty, we sell popular overseas products in small quantities, such as sunscreen and snail cream, so customers can discover new products each time they visit."
―What was the consumer response?
"It has been very effective in attracting customers. The first store saw a significant increase in wine sales after the launch of 'Ha Jung-woo wine'. Operating specialized displays for alcohol has increased sales of wine and whiskey, and fresh food sales have also increased significantly. The initial response to the instant pizza has also been positive. Similarly, specialized category sales at other stores have increased by 2 to 15 times."
―What is the change in sales?
"While there are variations by store, overall sales have grown by 1.5 to 2 times compared to before. The Jonggak store in Seoul has been expanded to align with the commercial recovery, and its sales have doubled. Although the facility costs for franchisees are higher than before, we are minimizing the burden through efficient design."
―What differentiates it from competitors?
"Other convenience stores also operate specialized stores, but 7-Eleven aims for national expansion with an outlet model. We are not just changing signage; we are comprehensively revamping categories, interiors, and products. We have actively introduced items that have a significant customer attraction effect, such as K League and KBO jerseys and collaboration products with artists."
―What are the advantages for franchise owners?
"Since the headquarters analyzes the commercial district before opening stores, the likelihood of success is high."
―What are your future expansion plans?
"We plan to expand not only in the metropolitan area but also in key locations such as Daejeon and Busan. In the long run, we aim to establish New Wave as a representative franchise model through nationwide expansion."