7-Eleven to close more than 400 stores in North America

Hundreds of 7-Eleven stores across North America are closing, the convenience store chain announced.

The company's CEO reported on Thursday in an earnings call held by Tokyo-based parent company Seven&I Holdings that it is closing 444 “incomplete” locations due to inflationary pressures, slower traffic, declining cigarette sales and changing consumer appetites.

The closings totaled 3% of the chain's more than 13,000 stores in the United States and Canada.

Seven and I saw a 7.3% drop in traffic in August, after several months of declines, and noted that lower-income consumers are taking a “more prudent approach to consumption” due to inflation, higher interest rates and what it called “erosion”. work climate

Cigarette sales have fallen 26% since 2019 — an 80-year low — according to the company, as consumers seek alternative nicotine products like gin.

Meanwhile, 7-Eleven said it plans to expand its fresh food and specialty beverage options, as people facing rising inflation look for affordable food options.

“Affordable, high-quality foods are becoming more important,” Joe DePinto, CEO and president of 7-Eleven, said on the earnings call.

Competitors known for having loyal fans of their food offerings have earned high marks from consumers. According to a recent survey by the American Customer Satisfaction Index, East Coast-based chains Wawa and Sheetz ranked high in customer satisfaction, while 7-Eleven scored below the industry average.

7-Eleven said it is shifting focus to invest in its high-demand locations.

“Integrated with our long-term growth strategy, we constantly review and optimize our portfolio to provide convenience to customers where, when and how they need it,” 7-Eleven said in a statement shared with multiple outlets. “At the same time, we continue to open stores in areas where customers are looking for more convenience.”

News of the closure comes amid a bid from Canadian company Alimentation Couch-Tard, the owner of Circle-K, to buy the 7-Eleven parent company. Such a takeover would make Couche-Tard the world's largest convenience store company.