Popular convenience store chain 7-Eleven is closing more than 400 locations

Popular convenience store chain, 7-Eleven, has announced the closing of more than 400 stores across North America.

Japan-based 7-Eleven, the parent company of Seven & I Holdings, announced Thursday that the chain will close 444 'underperforming' stores across North America.

Seven and I saw as part of their earnings report that stores closed due to various issues with changing consumer habits.

“The pullback in consumer spending continues beyond earlier expectations,” the release said.

The earnings report from 7-Eleven revealed that changing consumer habits have had a significant impact on store closures, largely driven by inflation.

Their earnings report revealed that inflation was a major influence, noting that rent, utilities, groceries and fuel all rose more than 25 percent from 2019.

In their earnings release, the company said: 'The North American economy remains strong overall at the expense of high-income earners despite persistent inflation, high interest rates and a deteriorating employment environment.'

'In this context, there was a more prudent approach to spending, particularly among middle- and low-income earners,' they added.

Consumer habits are beginning to focus more on quality products at lower prices, the company reports. revealed that 69 percent of shoppers wanted better quality products and 60 percent focused on better value for money.

Their report revealed that traffic to North American locations fell 7.3 percent in August, after the company experienced six consecutive months of traffic declines.

The company also noted a change in cigarette sales that saw a 26 percent decline in total packs sold, from 10,300 million in 2019 to 7,600 million in 2024.

This decline was not preserved with consumers switching to other nicotine products by only 18 percent and more consumers switching to cheaper products.

The company's earnings report revealed that traffic at its North American location fell 7.3 percent in August, after experiencing six consecutive months of traffic declines.

With more than 13,000 stores across the U.S., Canada and Mexico, the closures make up just 3 percent of their portfolio. The chain has more than 21,000 stores located in Japan.

A spokesperson for 7-Eleven told the Daily Mail: 'In line with our long-term growth strategy, we constantly review and optimize our portfolio to deliver it where, when and how customers need it.'

'As part of this, we have decided to optimize some non-core assets that do not fit our growth strategy,' they added, 'at the same time, we continue to open stores in locations where customers are looking for more convenience. .'

The closures are expected to benefit operating income by $30 million this year and boost the annual run rate by $110 million, according to their earnings release.

The news of the hundreds of store closures comes after Seven & I cut its earnings forecast for the fiscal year ending February 2025.

That was in line with the company's plan to split into two businesses, Fast Company said.

According to Bloomberg, their breakup and store closures are an attempt to reassure unhappy investors and ward off takeover bids.

The company hopes to focus on better performing locations that are facing high demand.