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From Small Business to Big Business – 7-11 Inc

Everywhere you go these days, there seems to be a convenience store on the corner of the intersection. And 7-11 is the king of the convenience store world. In fact, they could be considered the fathers of the self-service world, considering how old the company really is. Today, the company is a subsidiary of Japan’s Seven & I Holdings Co., but that wasn’t always the case.

7-11 was actually started in 1927 in Dallas, Texas by a man named Joe C. Thompson. You see Mr. Thompson, who was an employee of the Southland Ice Company, had an idea. In the days before refrigerators, you had to buy ice cubes to keep everything cold. Mr. Thompson, who happened to be working in an ice factory, thought he could make some money by selling basic items like milk, eggs and bread straight from the harbor as he had plenty of ice. He focused on practical things and the fact that he could keep them cool. This was something that other traders in the area could not do.

Needless to say, Mr. Thompson’s idea was a success. So much so that Mr. Thompson was able to purchase the Southland Ice Company, which he renamed the Southland Corporation. Soon he had several locations in the Dallas area. It was because of the clocks its stores kept that the stores were named 7-11 in 1946. It was unheard of for other traders in the area to open at 7am and close at 11pm. 100th store. In 1961, the company was founded under the name The Southland Corporation.

It was in 1962 that the idea of ​​a 24-hour store was first tried in Austin, Texas. Soon, 24-hour stores were established in Las Vegas, Fort Worth, and Dallas. It was business as usual for the next 35 years while the company continued to expand. But in 1987, the stock market crash would shake the company dramatically. That was the year John Philip Thompson, CEO and son of the founder of 7-11, attempted a $5.2 billion management buyout. The company tried to raise high-yield debt financing, but was unable to meet its need due to the crash. The company was forced to sell some of its shares to attract investors to its bonds.

Within a few years, it was on the verge of bankruptcy until its largest franchisee, Ito-Yokado, saved it. Soon, however, the Japanese company gained control of 7-11 and all of its stores. In 2005, Ito-Yokado founded Steven & I Holdings Co. with 7-11 Inc. as a subsidiary. And although the family that originally created the company no longer owns it, it has created a global icon in the convenience store. If you say you’re headed to the 7-11, everyone knows you’re headed to the corner store. Although today you can buy little more than milk, eggs and bread.

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