7-Eleven's Path to Building a Retail Media Network and Its Implications for the Convenience Store Industry

Over the past few years, asthird-party cookies have gradually been phased outand consumers accelerated their shift to online shoppingduring the COVID-19 pandemic, brands have urgently needed more effective ways to reach consumers at the point of purchase.

As a result, brands began purchasing advertising space on retailers' digital platforms andbuying retailers' first-party data—data voluntarily provided by consumers to the brand—to precisely target their desired audiences. When retailers engage in this type of advertising sales, it constitutes what is known as a "retail media network."Kroger, Walmart, and Amazon have long been active in this space, and other retailers are following suit. According to AdWeek,74% of brands had allocated dedicated budgets for retail media networks by 2022。

The Birth of Gulp Media Network

In October 2022, 7-Eleven officially announced the launch of its retail media network—Gulp Media Network. According to 7-Eleven's Executive Vice President and Chief Marketing Officer Marissa Jarratt and Vice President of Loyalty and Analytics Mario Mijares in a recent interview, this is the first retail media network in the convenience store industry.

Jordan Berke, founder and CEO of Tomorrow Retail Consulting, believes that 7-Eleven's entry into retail media is not only logical but necessary. He points out that many of the new projects 7-Eleven is developing require investment support, and developing a "thriving" media business is the best way to secure this alternative revenue stream. "If you look at other ways retailers can make money, media takes the largest share," Berke said.

Personalization and Fan Culture

Gulp Media was built over the past year to complement 7-Eleven's existing data-driven insights system, which already includes a shopper analytics platform, proprietary consumer research panels, and experience-based Lab Stores. Jarratt and Mijares say this move stems from needs 7-Eleven observed in the "immediate consumption market" (i.e., impulse purchases). "Retail fragmentation has already created complexity for CPG suppliers, and the immediate consumption market is even more fragmented," they said.

Although building a retail media network team presents challenges—for example,Walmart poached its advertising business head from Instacart in October 2021—7-Eleven did not recruit externally but instead formed the Gulp team by pulling personnel from its internal marketing department, selecting talent with "diverse backgrounds and experiences."

CPG brands participating in 7-Eleven's retail media network will leverage the retailer's customer loyalty data to reach target consumers within the convenience store channel. 7-Eleven's approach can be summed up in one word: "personalization." Jarratt and Mijares said: "Gulp Media not only analyzes demographic, geographic, and attitudinal signals, but also layers in shoppers' historical purchase signals."

Currently, 7-Eleven is focused on connecting its customer database with third-party advertisers through display ads, social media, and connected TV advertising. The two revealed they plan to explore in-store media "in the near future" and see integrating fuel pumps as a "significant opportunity"—but did not disclose progress on this front.

Jarratt and Mijares did not detail specific media campaigns with CPG partners, but noted that tapping into "fan culture and cultural relevance"—especially in sports—is helping Gulp Media grow. "This will ultimately accelerate our loyalty program, providing customers with greater transactional and experiential value," they said. If 7-Eleven grows its loyalty program with this strategy, it will in turn provide CPG partners with more first-party customer data. "We've only scratched the surface when it comes to fan and cultural relevance, and in the coming months we'll focus on more partnerships in fashion, sports, music, gaming, and beyond."

Three Key Elements

Berke is "optimistic and bullish" about the success of 7-Eleven's retail media network, even believing it will become dominant. "AlthoughGopuff has similar ambitions, we believe 7-Eleven will completely surpass Gopuff to build the most attractive omnichannel media network in the convenience store industry across the U.S."

Berke points out that retailers need three key "elements" to build a media network. The first is reach—as the world's largest convenience store chain, 7-Eleven has the largest convenience store loyalty program, providing ample reach. The second is data—Jarratt and Mijares say 7-Eleven's loyalty program has over 80 million members, offering advertisers vast targeting data that can cover segments from "energy drink enthusiasts who don't drink coffee" to "tobacco users trying to quit." "Such a massive loyal member base gives 7-Eleven precise targeting capabilities for advertisers. For retailers, having personal data that can be used to segment customers is crucial," Berke said.

The third element—and the hardest to acquire—is advertiser trust. Berke believes trust could become a "true differentiator" for 7-Eleven. Because 7-Eleven operates under a franchise system, its sales- and service-oriented culture gives it an inherent advantage over other retail media competitors. "They have a B2B culture that Walmart, Kroger, and Target have never had to some extent. When it comes to building the third pillar of a great retail media network, they already have a cultural advantage, which will be a huge asset when talking to their first advertisers."

Connecting Online and Offline

Even for the world's largest convenience store retailer, building a successful retail media network is no easy task. The biggest challenge 7-Eleven currently faces is bridging the gap between digital and physical. "Much of today's retail media focuses on e-commerce—especially sponsored search and banner ads—while we focus on driving consumers into physical stores," Jarratt and Mijares said.

Berke agrees that integrating online and offline is one of 7-Eleven's major challenges, specifically ensuring they can present ads in-store while simultaneously engaging users online. Additionally, he foresees 7-Eleven needing to address another challenge: understanding advertisers' needs and how to support them—even though these advertisers may be the same group as their suppliers. "Most of 7-Eleven's advertisers will be its suppliers. But serving them as advertisers is a completely different mindset and relationship compared to working with them as suppliers."

Berke notes that a third challenge 7-Eleven may face is generating enthusiasm among franchisees for Gulp Media. This can be achieved by demonstrating how shopping experience components like digital menus and mobile checkout platforms create more media opportunities. "They need to educate and motivate them, showing the potential of introducing new assets in stores. They need to bring franchisees along on this journey."

Industry Outlook

Apart from fuel business, convenience stores rely heavily on impulse purchases, which allows them to measure "different types of consumer behavior compared to other retailers." Additionally, convenience stores tend to offer small-format products, which could be an industry advantage. Jarratt and Mijares said: "The small packaging common in convenience stores lowers customers' purchase commitment, making convenience stores an ideal place to test innovations—before scaling up packaging sizes and expanding to larger retail channels once proven successful."

Berke agrees with the small-format advantage and adds that convenience stores "live in the moment," whereas consumers at competitors like big-box and grocery stores tend to have more planned visits, which benefits the convenience store segment. "Everything in convenience stores revolves around immediate consumption. As an advertiser, I can drive high margins because customers will react within two hours of seeing an ad."

When asked whether convenience stores of all sizes should consider entering retail media, Berke not only answered "yes" but emphasized "they must enter." He suggests the first step is understanding the business differences between media and retail, understanding the type of investment required, and building the "capability muscle" to manage and grow the network. Once these are done, the key is finding a differentiated position for your own brand. "You have to find a way to make yourself relevant, with enough reach, data, and trust to compete. You need to take action and build this capability—because if you haven't made progress in three years, you may find it difficult to establish yourself in this space."