Iconic convenience store brand 7-Eleven plans to close more than 400 “unprofitable” stores across North America, the Japan-based parent company said Thursday.
Seven & i Holdings Inc. said in its quarterly earnings report that some of its 13,000 7-Eleven stores in the U.S. and Canada are experiencing weak sales, declining customer traffic and inflationary pressures. The company plans to close 444 stores, or about 3% of its North American stores.
We operate over 21,000 stores in Japan.
Purchases of cigarettes, once a major sales category at convenience stores, have fallen 26% since 2019, and the shift in sales to other nicotine products has not made up much of the difference, the chain said.
“Despite continued inflation, rising interest rates, and a deteriorating employment environment, the North American economy remained strong overall thanks to spending by high-income earners,” Seven & i said in a release. “We’ve seen a more cautious approach to spending, especially among low- and middle-income earners.”
The retailer did not provide details about where the stores would close or when they would close.
“In line with our long-term growth strategy, we are continually reviewing and optimizing our portfolio to deliver convenience where, when and how our customers need it. 7-Eleven has decided to optimize a number of non-core assets that do not fit into these strategies. At the same time, we will continue to open stores in areas where customers are seeking more convenience,” 7-Eleven told CBS MoneyWatch. Ta.