Turning Around A Struggling 7-Eleven : Practical strategies to boost inventory turns, improve profitability, and make staff your biggest asset.

By Michelle Niccoli, NCASEF Vice Chair

If your store is currently losing money or just not hitting your profit goals, it is time to get serious about understanding what is going wrong and how to fix it. Often, the solution isn’t just about cutting costs—it’s about a comprehensive approach that involves analyzing your numbers, refining how you manage inventory, and most importantly, leveraging your staff. They can be your biggest asset or your biggest obstacle.

Here is my take on how to approach that:

1. Start with a Full Financial and Performance Check

Before making any changes, you need to understand where you stand:

• Sales Data: Break down your sales carefully—look at which products are moving, which are stagnant, and during what times of day or week sales spike or dwindle. This helps you identify your bestsellers and those that are not worth keeping.
• Inventory Turnover: Calculate how quickly your inventory turns over using the 48P Product Sales Analysis Report and the IMR (Inventory Management Report). A low rate usually means you are holding onto stock too long, which ties up cash and increases spoilage or markdown costs. Aim for a healthy turnover that aligns with your product types.
• Expenses: Take a close look at your biggest costs—payroll, utilities, write-offs, supplies—and compare them to the subgroup and market benchmarks. Is anything out of line? Are there areas where you can tighten spending without sacrificing customer experience?

 2. Sharpen Your Inventory Management

Proper inventory management is the backbone of profitability:

• Data-Driven Restocking: Use your POS system to see real-time sales trends. Adjust your stock levels accordingly—build up high-demand, high-margin items, and cut back on slow-moving or obsolete inventory. Think of it as working smarter, not harder.
• Minimize Waste: Train staff on FIFO (first-in, first-out) especially for perishable items and monitor expiration dates consistently. Implement routine stock counts to catch discrepancies early and prevent losses.
• Review Your Product Mix: Regularly evaluate what is selling and what is not. Consider seasonal or trending items that can bring in new customers. Remove dead stock swiftly and focus your space on products that turn over quickly and profitably.

3. Grow Revenue with Smarter Promotions

Promotions are a quick way to boost sales if executed correctly:

• Targeted Discounts: Use your sales data to run timely offers—discounting high-margin items or bundling complementary products to encourage larger transactions.
• Upselling & Cross-selling: Equip your team with menu prompts and scripts to suggest add-ons, upgrades, or related items. Even small suggestions can significantly increase total sales per customer.
• Store Atmosphere: Keep your store inviting—clean, organized, and well-lit. Small improvements in presentation can make a big difference in encouraging customers to linger and buy more.

 

4.Make Your Employees Your Secret Weapon

Your staff are personally responsible for a large chunk of your store’s success or failure:

• Understanding Their Impact: Disengaged employees tend to miss sales opportunities, mishandle stock, or contribute to theft, which erodes profit. Conversely, engaged staff who know their products and are motivated can drive sales and reduce losses.

• Harness Their Potential: Get your team involved—train them in customer service skills, inventory control, and loss prevention. Recognize their efforts openly; when they see their contributions matter, they are more likely to step up.

5. Invest in Training & Motivation

Well-trained staff do not just sell more—they also help keep your costs down:

• Sales & Customer Service: Regular sessions on product details, upselling, and a friendly attitude encourage customers to spend more.
• Shrinkage Prevention: Teach staff how to spot suspicious activity, manage stock properly, and handle cash accurately. Building a culture of responsibility helps reduce theft and waste.
• Operational Skills: Show your team how to optimize checkout speed, restock efficiently, and minimize waste. Small tweaks in routines can save time and money.
• Recognition & Rewards: Celebrate staff who go above and beyond—this fosters a sense of ownership and accountability.

6. Cut Costs & Improve Operational Efficiency

Be proactive in managing your overhead:

• Smart Scheduling: Use your sales data to align staffing levels with busy periods. Overstaffing during slow times means unnecessary labor costs; understaffing during busy hours can hurt sales and customer experience.
• Control Expenses: Create monthly budgets and stick to them. Communicate the goals to your team. Monitor your progress using your payroll reports, Daily AP9, supply budget, and the 48A, just to name a few.

 7. Boost Store Visibility & Customer Traffic

• Local Marketing: Use social media, flyers, or partnerships with nearby businesses to increase awareness. Sometimes simple, targeted outreach can significantly increase foot traffic.

• Store Presentation: Review your store daily. Keep displays fresh and strategically arranged. Highlight high-margin or promotional items at eye level and near entrances to boost impulse buys. Verify that POP is placed and visible.
• Equipment:  Monitor cleaning and maintenance of all equipment inside your store. Create a sense of urgency to report issues. Follow-up to ensure timely repair.
• Cleanliness and Layout: Make sure your store is spotless and easy to navigate. An inviting environment encourages customers to stay longer and buy more.

 8. Reassess Your Strategy & Store Layout

• Regular Evaluation: Keep track of what marketing tactics and promotions are actually bringing in customers—or not. Be ready to pivot as needed.

• Store Layout Optimization: Place your most profitable and popular products in high-traffic areas. Use signage to draw attention to key items.
• Streamline the Shopping Experience: Simplify the layout to reduce confusion, make checkout faster, and guide customers towards high-margin products.

Why Your Employees Are the Key to Profitability

Your staff can be your best asset or your biggest obstacle:

• Preventing Shrinkage: Employees who are engaged and trained help minimize theft, waste, and inventory errors.
• Driving Sales: Encouraging upselling, friendly service, and initiative-taking engagement increases transaction sizes and overall revenue.
• Managing Inventory: Proper handling, rotation, and regular cycle counts help reduce waste and avoid stockouts.
• Operational Excellence: Well-scheduled and motivated staff work more efficiently, reducing labor costs and improving margins.

Create a culture that values responsibility and recognition. Regular training, clear expectations, and rewards can motivate your team to take ownership of their roles—and ultimately contribute directly to your store’s turnaround.

Final Thoughts

Revitalizing a store that is not performing well takes a comprehensive, disciplined approach. The key is to understand your financials inside and out, optimize your inventory, cut unnecessary costs, and, most importantly, empower your staff. They are your frontline, and their attitude and skills can make or break your store’s success.

By focusing on these strategies and fostering a team culture of accountability, continuous improvement, and motivation, you set your store up for a healthier, more profitable future. The work might be challenging, but with focus and the right mindset, turning things around is absolutely within reach.