7-Eleven, the iconic convenience-store brand, plans to close more than 400 “underperforming” locations across North America, its Japanese-based parent disclosed on Thursday.
A portion of the 13,000 7-Eleven locations across the U.S. and Canada are experiencing slowing sales, less foot traffic and inflationary pressures, Seven & I Holdings stated in a quarterly earnings report. The company plans to close 444 locations, or roughly 3%, of its North American stores.
It also operates more than 21,000 stores in Japan.
Cigarette purchases, at one time a key sales category for convenience stores, have fallen 26% since 2019, with a shift in sales to other nicotine products not making up much of the difference, the chain noted.
“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 said in a release. “There was a more prudent approach to consumption, particularly among middle- and low-income earners.”
The retailer declined to provide any details as to the locations of the stores to be closed or when the closures would occur.
“Aligned with our long-term growth strategy, we continuously review and optimize our portfolio to deliver convenience where, when and how customers need it. As part of this, we made the decision to optimize a number of noncore assets 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,” 7-Eleven told CBS MoneyWatch.
