7-Eleven to Close 450 Underperforming Stores in North America Amid Sales Slump

7-Eleven, a well-known convenience store chain, announced plans to close 444 stores across the U.S. and Canada, citing declining sales and reduced customer traffic. The closures represent about 3% of the chain's total locations in North America, which currently stands at around 13,000.

Who Made This Decision

The decision was made by 7-Eleven's parent company, Japan-based Seven & I Holdings, and revealed in the company's most recent earnings report. The company pointed to a mix of economic factors, including inflation, higher interest rates, and decreased consumer spending among middle- and low-income customers. Specific store locations set for closure have not yet been disclosed.

Over the past six months, 7-Eleven has seen consistent drops in foot traffic, including a notable 7.3% decline in August. While high-income consumers have continued to spend, the company said that many other customers have cut back, leading to decreased sales across several product categories.

A Big Reduction In Cigarette Sales

One of the biggest challenges has been a significant reduction in cigarette sales, historically a major revenue driver for convenience stores. Since 2019, cigarette sales have fallen by 26%, and efforts to boost sales of alternative nicotine products have not compensated for the decline.

Shifting To Food Sales

In response to these shifts, 7-Eleven plans to refocus its business strategy around food, now the top-selling category in its stores. The company also emphasized its commitment to retail innovation and global growth as it seeks to transform its stores and strengthen its market presence.

Earlier this year, 7-Eleven announced plans to bring more international food items to its U.S. locations, including popular products like milk, bread, egg sandwiches, and miso ramen, as part of its effort to cater to evolving consumer tastes.

Though the closures affect a relatively small percentage of the chain’s overall footprint, they highlight the challenges 7-Eleven faces in a shifting retail landscape. The company is hopeful that its pivot toward food and innovation will help it navigate these difficulties and position itself for future success.