According to Fox Business, the iconic convenience store chain 7-Eleven will close 450 underperforming stores across North America, the company announced late last week.
Per the report, the reasons for the stunning closing are due to a decline in revenue, particularly cigarette sales, contributed to the convenience store chain’s closing of 444 locations, Seven & I Holdings, the company’s Japan-based parent company, announced in an earnings report.
7-Eleven closing nearly 450 underperforming stores https://t.co/kK8f9MGitj pic.twitter.com/MMD5eA17mT
— New York Post (@nypost) October 12, 2024
Additional reasons for the store closures include decreased traffic and inflation, the Fox Business report noted.
The chain has suffered traffic declines for six consecutive months, including a 7.3% plunge in August 2024, the report noted.
And, 7-Eleven’s cigarette sales, once the largest source of revenue for convenience stores, fell 26% since 2019.
7-Eleven has approximately 3,000 locations across the U.S. and Canada; the announcement will only affect three percent of the company’s portfolio, according to the report.
It is not known which specific locations will close.
“The North American economy remained robust overall thanks to the consumption of high-income earners, despite a persistently inflationary, elevated interest rate and deteriorating employment environment,” Seven & I Holdings said in an earnings release. “In this context, there was a more prudent approach to consumption, particularly among middle- and low-income earners.”
According to the report, the company plans to shift its focus to food, which has since become the highest-grossing product category, the outlet reported. 7-Eleven said in July it would sell popular international food items — including milk, bread, egg sandwiches and miso ramen — at its U.S. locations.