7-Eleven to Close Over 400 Underperforming Locations in North America

7-Eleven, the global convenience store chain, has announced the closure of 444 underperforming locations across North America. This decision, revealed in an earnings report by Seven & I Holdings, the Japan-based parent company of 7-Eleven, is attributed to several factors including slowing sales, declining traffic, inflationary pressures, and a significant decrease in cigarette purchases.

The closures, which represent about 3% of 7-Eleven’s portfolio of over 13,000 stores in the United States, Canada, and Mexico, are part of the company’s strategy to optimize its store network and maintain efficiency. According to retail industry analyst Neil Saunders, the closed stores have likely suffered from a disproportionate decline in foot traffic and customer visits, exacerbated by rising food prices and increased competition from online and value stores.

The decline in cigarette sales has been particularly impactful, with a 26% drop since 2019. Despite a shift towards other nicotine products like Zyn, the sales gap has not been fully bridged. However, 7-Eleven plans to continue investing in its food offerings in the United States, as this category has become the highest sales driver and a key attraction for customers.

Despite these closures, 7-Eleven remains committed to opening new stores in areas where customers are seeking greater convenience. The company’s latest financial results come at a time when it is also facing a takeover bid from Couche-Tard, the owner of Circle-K, which has increased its offer to $47.2 billion.