Popular convenience store chain 7-Eleven is set to close over 400 locations
Popular supermarket chain 7-Eleven has announced the closure of more than 400 stores in North America.
7-Eleven’s parent company, Japan-based Seven & I Holdings, announced Thursday that the chain would close 444 “underperforming” stores in North America.
Seven and I discovered as part of their earnings report that a variety of issues in changing consumer habits led to the store closures.
“The decline in consumer spending has continued beyond previous expectations,” the press release said.
With more than 13,000 stores in the US, Canada and Mexico, the closures represent just 3 percent of their portfolio
7-Eleven’s earnings report showed that changing consumer habits had a significant impact on their store closures, largely driven by inflation
Their earnings report found that inflation was one of the main influences, stating that as of 2019, rent, utilities, groceries and fuel had all increased by more than 25 percent.
In their earnings release, the company said: “The North American economy remained robust overall, driven by high-income consumption, despite persistent inflation, high interest rates and a deteriorating employment environment.”
“In this context, there was a more cautious approach to consumption, especially among middle and low income groups,” she added.
Consumer habits began to focus more on quality products for less money, the company’s report found. It showed that 69 percent of shoppers wanted more quality products and 60 percent focused on good value for money.
Their report showed that traffic at North American locations fell 7.3 percent in August, after the company experienced six consecutive months of declining traffic.
The company also noted the shift in cigarette sales, with the total number of packs sold declining by 26 percent, from 10,300 million in 2019 to 7,600 million in 2024.
This decline was not saved by consumers choosing other options: only an 18 percent shift to other nicotine products, and more buyers switching to cheaper products.
The company’s earnings report showed that traffic at North American locations fell 7.3 percent in August, after six consecutive months of declining traffic
With more than 13,000 stores in the US, Canada and Mexico, the closures represent just 3 percent of their portfolio. The chain also has more than 21,000 stores in Japan.
This is what a 7-Eleven spokesperson said Fast company: ‘We have made the decision to optimize a number of non-core activities that do not fit into our growth strategy. At the same time, we continue to open stores in areas where customers are looking for more convenience.”
The closures are also expected to deliver a $30 million operating profit benefit this year and a $110 million boost to annual run rate, according to the earnings release.
News of the hundreds of store closures comes after Seven & I cut their profit forecast for the fiscal year ending February 2025.
This was also accompanied by the company’s plans to split into two companies, Fast Company reports.
Their divorce and store closures are also an attempt to reassure disgruntled investors and keep takeover bids at bay, according to Bloomberg.
The company hopes to focus on the better-performing locations that are in higher demand.
Daily Mail has contacted 7-Eleven for comment.