The convenience store industry has never been at a more competitive stage before, as newer entrants are coming up with more creative ways to attract customers. The 7-Eleven chain of stores is one of the largest and the most infuential convenience store chains and is planning to make some changes in response to Tesco’s entry in the market with its Fresh & Easy Markets. Other companies such as Starbucks have come up with to-go sandwiches and Walgreen’s is testing out a self-serve Cafe W. And one Florida based company is creating an “unmanned” grocery store which will have only vending machines.

Tesco will be opening 300 stores in the US, in California, Nevada and Arizona in the next five years. The first of these will open in October and will cover around 10,000 sq ft, much smaller than a regular supermarket but four times larger than a 7-Eleven. 7-Eleven is trying to make itself more responsive to the market and cut down on periferals and is going to operate in a franchise-only format. The company serves 6 million customers every day in the US and Canada.

The industry’s challenge is “reversing the stigma associated with fresh food in a convenience store setting – that is, shriveled hot dogs on the roller grill and some less-than-attractive stores,” said Jennifer Halterman, a senior consultant at TNS Retail Forward Inc. 7-Eleven has been “a leader trying to bring healthier foods into its stores, and it’s pushing the envelope,” she said. But “alternative players could distract shoppers with these new concepts. These formats – and other similar concepts likely to follow – have the potential to alter the landscape.”