7-Eleven will close more than 400 underperforming stores in the United States, as announced by its parent company, Seven & I Holdings.
The decision to shutter 444 locations comes amid declining traffic and sales, which the company attributes to inflationary pressures affecting consumer behavior and a nationwide decrease in cigarette sales.
The closures, expected to occur in the fourth quarter of this year, represent approximately 3% of 7-Eleven’s total network of 13,000 stores in the US and Canada. A list of the specific stores slated for closure has not been made public. The announcement was part of Seven & I Holdings’ recent earnings call.
The company reported that it has experienced six consecutive months of declining customer traffic, including a notable 7.3% drop in August. Despite a generally robust North American economy, the convenience store chain noted that middle- and low-income consumers are adopting more cautious spending habits, which has impacted sales.
Cigarettes, once a major revenue driver for convenience stores, have seen a 26% decline in sales since 2019. The shift in consumer preferences towards alternative nicotine products has not significantly offset this decline. In response, 7-Eleven plans to transform its store offerings to focus more on food, which has become the highest-selling category for the chain.
To strengthen its market position, the company aims to expand its proprietary products, including fresh food and beverages, and enhance its digital and delivery services. It will also continue to grow its loyalty program.
In a broader restructuring effort, Seven & I Holdings plans to create a new holding company named York Holdings, which will encompass 31 subsidiaries, including various retail businesses. The parent company intends to rebrand itself as “7-Eleven Corp” to reflect its commitment to the convenience store sector.
The announcement comes after Seven & I Holdings rejected a bid from Alimentation Couche-Tard, the operator of Circle K, in August, claiming the offer undervalued the company and its potential for growth.
With input from USA Today and FOX Business.
