Hundreds of 7-Eleven stores in North America are set to close due to underperformance, the company announced recently. The parent company, Seven & I Holdings based in Japan, shared in their earnings report that 444 locations will be shutting down. Reasons for the closures include slowing sales, decreased foot traffic, inflation, and a decline in cigarette purchases.
While a detailed list of the stores closing was not provided, it was mentioned that this would affect only 3% of the total 13,000 7-Eleven stores in the U.S. and Canada. Additionally, the chain has over 21,000 shops in Japan.
Seven & I attributed the closures to the economic landscape in North America, noting that despite a strong overall economy, there has been a more cautious approach to spending, especially among middle- and low-income earners. Cigarette sales, which used to be a significant revenue stream for convenience stores, have dropped by 26% since 2019, with alternative nicotine products failing to make up the difference.
However, 7-Eleven remains committed to investing in its food offerings, which have become the top-selling category for the chain. In a bid to attract more customers, the company also announced plans to introduce popular international food items like milk bread egg sandwiches and miso ramen in the U.S.
It’s clear that the convenience store industry is evolving, with changing consumer preferences and economic conditions shaping the decisions of major players like 7-Eleven. As the company navigates these challenges, it will be interesting to see how its strategic shifts towards food offerings and international products will impact its future growth and success in the competitive retail landscape.
