7-Eleven is closing more than 400 locations in North America

New York — Hundreds of “underperforming” 7-Eleven locations across North America are closing, the convenience store announced.

seven A&I Holdings, the chain's Japan-based parent company, disclosed in an earnings report Thursday that 444 7-Eleven locations are closing due to a variety of issues, including slow sales, declining traffic, inflationary pressures and declining cigarette purchases.

A specific list of the closing locations was not immediately released. The chain has more than 13,000 stores across the United States, Canada and Mexico, so the closings amount to 3% of its portfolio.

In its earnings release, seven And I said that while the North American economy is “strong overall,” it has seen “a more prudent approach to consumption” from middle- and lower-income earners due to persistent inflation, high interest rates and an “eroding” employment environment.

A combination of these factors led to a 7.3% drop in traffic in August, capping a sixth straight month of declines.

The chain also noted that cigarette purchases, once the largest sales category for convenience stores, have fallen 26% since 2019. A significant shift in sales to other nicotine products, such as Zyn, did not make a difference.

7-Eleven told CNN in a statement that it “continually reviews and optimizes its portfolio” and that the closed stores are part of its growth strategy, adding that the chain continues to “open stores in areas where customers are looking for more convenience.”

According to Neil Saunders, retail industry analyst and managing director of GlobalData Retail, the 444 closure is “a gentle pruning of the chain to keep it efficient and profitable”.

“Locations that are closing are likely to have suffered a disproportionate decrease in foot traffic and customers as consumers struggle with rising food prices and cut back on their purchases,” Saunders told CNN. “In some areas, increased competition from online and value stores has also taken their toll as consumers seek lower prices.”

Meanwhile, 7-Eleven said it will continue to invest in food in the US as it is now the highest selling category and a top draw for customers. Competitors like Wawa and Sheetz are earning higher customer satisfaction scores for their overall offerings, while 7-Eleven ranks much lower, according to a recent survey.

The company's latest financial results come amid a takeover offer from Circle owner Couche-Tard, which this week raised its bid by $8 billion to $47.2 billion.

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