7-Eleven Philippines
Company overview
7-Eleven Philippines operates over 4,500 stores across a fragmented archipelago, supported by more than 20 distribution centers that supply 90%+ of store sales—far more than a contiguous market would require. This geographic and cultural diversity (including multiple dialects and highly localized demand patterns) creates significant operational complexity.
We manage this through strong culture and talent development, simple real-time metrics that align incentives, and tailored franchising models for over half our stores.
We have always looked to technology to increasingly solve real time and space constraints on meeting more of our customers’ needs. Our cash-in platform processes 5X our retail sales in Peso volume, which we deposit in our recycler ATMs for real-time credit (largest network in the Philippines). In dense areas, mini-commissaries serve up to 40 stores via motorcycle delivery with fried chicken cooked less than half an hour ago.
The most persistent challenge has been assortment planning and execution: tailoring range in a diverse demographic landscape (Muslims don’t eat pork rinds, poorer people don’t drink Evian) is something that we knew Omnistream’s variable planograms (vpogs) could solve, but doing so in the face of constant supply chain challenges (inbound supplier fill rates to our DCs average ~80%) and typical small-format execution problems (single facings, backroom replenishment) made them too complex to easily scale. We could not identify gaps between the ideal picture that vpogs painted and the messy reality we had to render it in to create proper feedback loops for Omnistream to calibrate and adjust their vpogs accordingly.
Overcoming this technical and logistical challenge with finality and scale as this entry describes has freed up our front liners to focus more on the one thing we believe people can always do better than machines: building relationships with other people, especially our customers. Our next big project, for example, involves our clerks performing face to face ID checks for digital lenders, but perhaps that’s an entry for next year.
Set the Scene
We introduced variable planograms (VPOGs) to better match assortment to each store’s demand. While they delivered 10–15% sales uplift, execution was difficult—stores relied on delayed audits and manual checks, with limited visibility into actual shelf conditions.
OmniShelf StoreOS was deployed to solve this gap. Using edge AI, store staff can scan shelves via mobile devices and receive immediate, actionable guidance to correct planogram and availability issues.
At scale, this has transformed execution—reducing manual effort, improving compliance, and enabling us to sustain a more complex, localized assortment strategy across 4,500 stores.
Innovation Overview
OmniShelf StoreOS is an edge AI–enabled shelf intelligence platform that automates planogram compliance and on-shelf availability (OSA), while guiding store staff through immediate corrective actions.
Using handheld devices, employees scan shelves and receive near-instant feedback on gaps—what is missing, misplaced, or incorrectly stocked—and how to fix it. This effectively places a “digital auditor” in every store, enabling real-time execution rather than delayed reporting.
The innovation addresses a core retail problem: the gap between central planograms and in-store reality. By simplifying execution, it allows us to sustain more complex, localized assortments without increasing operational burden.
The system sits at the intersection of in-store intelligence and workforce enablement, replacing manual processes with a scalable, data-driven workflow that improves availability, compliance, and ultimately sales.
Challenge & Opportunity
Our core challenge was the lack of real-time visibility across 4,500+ stores, combined with the high cost and delay of manual compliance processes. Excel-based workflows and third-party audits created lagging, incomplete views of execution—directly impacting sales.
The introduction of variable planograms increased both opportunity and complexity. While they improved performance, they widened the gap between what should be on shelf and what actually was—creating strain on store operations.
This created a clear opportunity: digitize execution at the store level, eliminate manual reporting, and enable immediate correction of issues. The goal was not just efficiency, but making a more complex merchandising strategy operationally viable at scale.
Partnerships & Ecosystem Collaboration
The solution was developed through close collaboration with OmniShelf, alongside our internal Operations and IT teams. We were their first customer, just as we were Omnistream’s.
A key design choice was on-device (edge) processing, allowing the system to function reliably even in areas with unstable connectivity—critical in our market. This also reduced infrastructure costs and avoided additional hardware investment.
The platform integrates with our existing systems (including Azure and device management), and supports rapid updates to products and planograms within 24–48 hours.
Beyond implementation, the partnership has evolved into co-development, with ongoing enhancements informed by live operational feedback. The solution is now being referenced and explored across other 7-Eleven markets, much as Omnistream has in other formats around the world.
Setup & Early Experiments
We began with a Proof of Value (Dec 2023–May 2024) across 100 Metro Manila stores, focusing on four high-impact categories: Beer, Chips, Soft Drinks, and Cigarettes.
Using existing handheld devices, we tested real-world image recognition accuracy and usability. This avoided costly infrastructure upgrades and accelerated deployment.
The pilot focused on closing the gap between reported and actual shelf conditions. We measured both operational effort and commercial impact, including time spent on execution tasks.
Results were immediate: planogram compliance improved by 35%, and on-shelf availability increased (e.g., +9.3% in Beer). These outcomes validated both the technology and the operating model, supporting rapid scale-up.
Digital & Data Enablement
The system generates large-scale visual and operational data—over 200,000 shelf scans per week—enabling near real-time visibility across the network.
This data feeds directly into execution: district managers receive regular performance reports, and leaderboards create accountability and engagement at store level. Incentives are aligned by linking bonuses to OSA performance.
The platform also supports rapid planogram updates and SKU integration (within 24–48 hours), allowing us to manage both dynamic and standard assortments across the network.
Crucially, technology is not just diagnostic but prescriptive—turning data into immediate, actionable tasks for store staff.
Scaling the Innovation
Following pilot success, we scaled from 100 to 4,500+ stores by Q4 2025 through a phased rollout.
Implementation was done in batches to allow continuous learning, supported by our existing field structure (zone reps, district managers). Training was standardized, with real-time support channels (e.g., Viber) to manage issues quickly.
The solution required minimal infrastructure change, enabling rapid deployment across both existing and new stores.
Scaling is now embedded in operations, with 20–50 new stores onboarded monthly. We are also expanding the ecosystem to include electronic shelf labels and camera-based monitoring to further automate execution.
Operational Transformation
The innovation replaced a manual, audit-driven process with a continuous, digital workflow.
Store teams now conduct regular scans across key categories, covering ~85% of assortment. Instead of reporting issues, they are guided to fix them immediately—improving both speed and accuracy.
This has eliminated the need for third-party audit services, reduced operational friction, and significantly improved consistency across stores.
The system also improves accountability by flagging inactive locations and enabling proactive intervention. Integration with ordering further allows stores to address availability gaps directly.
Overall, execution has shifted from periodic compliance checks to continuous, embedded operations.
Setbacks & Pivots
Variable planograms had long demonstrated strong potential, but execution challenges at scale created operational resistance. As rollout expanded, complexity increased and strained store teams.
The introduction of OmniShelf addressed this, but required changes beyond technology.
We aligned incentives by linking store bonuses directly to OSA performance, shifting perception from “monitoring tool” to “performance enabler.” We also moved from a “big bang” rollout to a phased approach, allowing for learning and adaptation.
These changes were critical in driving adoption and embedding the system into daily operations, ultimately enabling a broader shift toward more disciplined and consistent execution.
Impact & Results
The measurable impact of OmniShelf has been transformative for 7-Eleven Philippines.
- Financial results: We measured the impact of the implementation on sales during the roll-out phase comparing results from 600 stores using the solution vs. a benchmark of 600 stores that were not yet implemented. The “OmniShelf stores” showed 1,7x like for like sales growth and 2,3x profit margin growth vs. benchmark stores.
- Operational Scale: We have achieved massive adoption, with ~4,500 stores participating weekly and generating ~800,000 monthly reports.
- Compliance Uplift: In our early data, we saw Planogram compliance grow by 35%, while OSA for key categories like Beer and Soft Drinks increased by 3% and 6.8% respectively.
- Cost Efficiency: We successfully met our goal of eliminating external auditor services, shifting the budget to internal tech enablement. We estimate that the solution saves up to 76 hours per store per month of time dedicated to planogram execution and restocking.
- Employee Engagement: Feedback from store staff has been overwhelmingly positive, with an NPS score of 9.2 out of 10. One of the staff even stated that the solution scores “20 out of 10” during pilot phase, citing that the app makes shelf-fixing “fast and compliant”.
- Financial Alignment: By tying bonuses to OSA, we have created a direct link between operational discipline and financial reward for our franchisees and staff.
- Data Reselling and brand relations – OmniShelf App now provides PSC Brands Portal with data 3x weekly, replacing the previous manual, weekly collection by field marketers. This eliminated weekly OSA auditor visits, resulting in significant cost savings.
Scalability & Future Potential
The platform is now deployed across 4,500+ stores and designed for continuous expansion.
Near-term enhancements include:
- Probability-based cycle counting to integrate stock-on-hand data
- Price and promotion compliance tracking
- Automated replenishment triggers based on shelf gaps
- Closer integration with dynamic planogram systems
Longer term, we are piloting shelf cameras and electronic labels to move from reactive to proactive execution—toward a fully automated “perfect store” model.
