7-Eleven to Close Over 400 Stores Amid Declining Sales and Inflation

7-Eleven, a leading convenience store chain, has announced the closure of more than 400 stores across the United States and Canada. Company officials have attributed these closures to declining sales exacerbated by inflation and a continued decrease in cigarette sales. The 444 stores marked for closure are part of the 13,000 locations 7-Eleven operates in North America.

The announcement was made during the company’s most recent earnings call, although a detailed list of specific store closures has not been disclosed. The closures are slated to occur in the fourth quarter of this year. A spokesperson for 7-Eleven did not immediately respond to a request from the USA TODAY Network for more information on the locations that will be affected.

7-Eleven is not alone in facing store closures amid economic challenges. Other major retailers, including Walgreens, have also announced plans to close stores or have declared bankruptcy due to similar pressures.

In light of these developments, 7-Eleven is taking steps to revamp its business strategy. The company aims to expand its range of proprietary products, focusing on fresh food and beverages. Additionally, 7-Eleven plans to enhance its digital and delivery services, including further growth of its loyalty program, as well as improving its store network.

The company’s parent firm, after declining a purchase offer from Circle K operator Alimentation Couche-Tard in August, is under pressure to demonstrate its potential for value enhancement to investors. It has planned to reorganize some of its assets into a new holding company named ‘7-Eleven Corp,’ emphasizing its focus on the convenience store business. This holding company, York Holdings, will incorporate 31 subsidiaries, including businesses such as superstores, general goods outlets, a baby goods store, and the operating company of Denny's restaurants in Japan.