The Re-Newed Expansion of 7-Eleven in Winnipeg

 

Southland Corporation in Dallas had been operating stores since 1927 but by 1946 had re-branded as 7-Eleven to reflect their general operating hours. It began to franchise in the 1960s to various countries such as Canada. The first store in Canada would be in Calgary with others that quickly followed. Unbeknownst to many, 7-Eleven has been Japanese owned since 1991.

The history of 7-Eleven in Winnipeg goes back to 1969. The first location in Charleswood was before the municipality even joined the city in 1972. The first 7-Eleven locations were built in Alberta and only a few months later Winnipeg's was built on Dale Avenue as part of the Westdale Shopping Mall. By 1979, there were over 40 stores across the city. Initially, they were operating from 7 am to 11 pm but a number of stores operated 24 hours a day except Christmas and a few other holidays over the years where they closed all day or were of reduced hours.

Robberies were awful at any store that operated 24 hours. This included Domo gas stations, Mac's and 7-Eleven. Some stores reduced hours because Winnipeg was near the worst in Canada for this. The police wanted the stores closed at night but conveniences stores pushed back. The company responded in 1976 with some of the security measures that everyone today is familiar with. The 6000 stores across North America now had limited amounts of cash at night. By 1980, the timed safes were in place. The first lottery tickets were sold in 1971 in stores, a first for Canada.

It may be hard for people to remember but Slurpees were behind the counter and poured by employees from 1969 to late 1980s. It was very limited in flavours in that Coke and Sprite were the only consistent drinks. Hoagies first appeared in the 1980s. And Slurpees in Canada were different than the U.S. in that they were more icy while in the U.S., they were more syrupy.

Sometimes it was 7-Eleven that led innovations and sometimes it was different regions and stores adapted to the areas. Microwaves introduced at stores in the very late 1970s and 1980s made it possible to have heat and eat items. Burgers, hotdogs and hoagies were popular in Canada. In Japan around the same time it was rice balls (o-nigiri) or simmered foods (o-den). In the U.S. it was hotdogs and burgers. I would think that chicken has really taken over at 7-Eleven over the last several years.

In 1991, the family that owned majority shares of 7-Eleven tried to take the company private and was overwhelmed with debt. Even selling some divisions was not enough to bail them out. In Canada, we probably didn't know they were even in trouble. The Japanese franchise was probably surprised how tenuous the parent company was in Dallas. Because of the strength of the Japanese yen, they were able to take majority ownership of the company and several years later made it a full subsidiary.

Most Canadians still don't know that the ownership change happened. Nor was there any sense of who directed how operations were to be run in Winnipeg or Canada, for that matter. There does seem to be a general manager in Winnipeg for the corporate stores although there is a distribution center on Bentall. This begs the question of who makes decisions for the stores on say, what newspapers should be carried or what local food needs to be on the shelves. One example, in 1979, after the Winnipeg Arena was expanded for the NHL's Winnipeg Jets, tickets were sold to games for a discount.  The Charleswood location became a prime spot to grab these tickets. In 2025/2026. 7-Eleven came on board as a Jets sponsor and a Slurpee machine now resides at the Canada Life Centre and store ads appear on the broadcasts. In the past, only the Dallas Stars got that ad support for a hockey team. Not surprising since that is where the company was founded and still operates the U.S. base.

In the most recent year, 7-Eleven Canada has tied to evolve a small restaurant style area that serve alcohol. In Winnipeg, it is only one location on Ness and that location isn't even open 24 hours. In Ontario, they have far more testing this out. And it is a test. It might not work. Sometimes 7/Eleven chases a trend as it did with renting videos back in the 1980s. It took some years but the convenience store retreated from sales when big players like Blockbuster, Jumbo and Rogers took over.

Convenience stores like 7-Eleven have always had coffee but even those use to be poured by store clerks at one time. Then small coffee stations were set up with coffees rotated by clerks. Now the machinery and choices for coffee are a lot more varied.  It is uncertain how many people get coffee at 7-Eleven in Winnipeg compared to competitors. To be sure Winnipeg is very much a Slurpee city unlike any other in the world. It isn't just corporate kiss-up when 7-Eleven says Winnipeg is the Slurpee capital of the world. It is a phenomenon unlike any other place on the planet. In some stores there are a dozen or more choices. In a Japanese 7-Eleven they are likely two machines and they aren't going to be Coke and Sprite.

Magazines are no longer in stores in Canada. They used to be positioned in their own row and newspapers were right beside the store. Some 7-Elevens in Winnipeg used to have Toronto Stars, USA Today and every national paper along side the local Free Press and Sun in abundance. Newspapers are now exiled to the corner.

Pay phones were once inside, then moved outside and now gone altogether. Banks vie for space for ATMs inside 7-Eleven. Lottery stations are now right beside the door. The formerly clerk supplied food is now self serve and deliveries have exploded in every 7-Eleven.

Canada's Circle K attempted to take over 7-Eleven worldwide last year and failed in part to the difficulty it is for international companies to take over Japanese ones. Some were saying Japan might be invoke national security reasons since convenience stores are so depended on in Japan. Oddly enough, 7-Eleven continues to acquire stores in the U.S. but that same courtesy does not extend the other way.

Regardless, it appears both companies are cutting marginal stores and ones subject to safety issues. Winnipeg has seen around 10 stores cut in recent years and management has said some of it is because of crime. In fact, they put a number on how much product was being removed from stores and it was in the hundreds of thousands of dollars. That is unsustainable and while corporate critics might not have had any sympathy, this level of theft was also taking down mom and stores and leaving the area barren of any grocery or convenience stores. 

According to Mayor Gillingham in his State of the City address, 7-Eleven has spoke to him about an expansion of the company in Winnipeg. After the closure of the aforementioned locations, it is curious what the company has in mind. We can take our clues from some information released back in February as well as world reports on 7-Eleven. In terms of the former, 7-Eleven has indicated they are open to franchising opportunities. This is interesting because they are very much a corporate store company. In Australia, the company took over the entire Australian franchise as part of corporate takeover. In Canada, they appear to to looking at side by side operations.

So what does that mean? It means that we could more of a saturation of stores in certain parts of the city. For example, Portage Avenue has two stores along the entire run from Portage and Main to Headingley. In Tokyo, that would be unheard of. The company would try and place stores along major transit hubs and shopping areas. Suffice to say that places like Charleswood and St. James with only four stores seem a little light in terms of presence. 

There is no getting around the shoplifting issue in Winnipeg and around North America, for that matter. 7-Eleven is at the forefront if security for convenience stores in the world so expect even more efforts to reduce theft and identify those who are responsible. It will be positioning any new stores to have the best chance of success but also security. Given how many university students are off Pembina Highway, it is a missed opportunity that 7-Eleven has no stores aside from the one. This seems a perfect opportunity for franchises. And let's not even talk about how underserved the east side of the Red River is. 

An opportunity for franchisors to do really do well with a company that is iconic in Winnipeg is good. In some cases, some areas are crying out for any kind of convenience store. There are literally none and certainly not 24 hours. There could be opportunities as well for stores inside malls, airport and sports facilities. 

This doesn't have to be all bad for existing convenience stores. There have been several that have opened up and they are finding niches that 7-Eleven can't fill such as being on the ground floor of apartments, offices and the like where they would rely on foot traffic more than car traffic. These stores also cater to niche areas such as ethnic foods to sell or to serve. 7-Eleven may be a lot of things but not a seller of ethnic foods or big on foot traffic. Even St. James has seen at least three convenience stores that fit the ethnic label open in the last 12 months.

From the government side things, the province has to keep pushing on secret property agreements that protect companies such as Safeway/Sobeys having any competitors set up near them. This sounds like it might apply to just big stores but any agreements of exclusivity need to be known and hoarding properties is anti-competitive and should be dealt with federally by the Competition Bureau and by the provinces to make sure these secret agreements see the light and are handled by the municipal board. As far as the city goes, they need to ensure security for 24 hour stores and that may entail more police visits, safety audits and sharing of information. A lot of trouble is sometimes organized or the same people.

Some might not find an expansion of 7-Eleven exciting but if the attempt is to make the stores as essential as they are in Japan, that mean offering food and service at prices that are compelling. For example, the egg salad sandwich in Japan sells for 200-300 yen. That is about $2.50 Canadian. The egg sandwich in Winnipeg is $5.00. We need to keep competition up in Winnipeg because those type of prices for 7-Eleven are typical for a number of products in Japan.

They key to vitality in many cities is the diversity of options for those who live in it. Think of the bodegas of New York or the bakery shops on Paris. Price competition competition comes from a multitude of suppliers. If we ever want to have $2.50 egg sandwiches, a Japanese-style surge of stores will help.