7-Eleven Trims 400 Stores: What’s Behind the Closures?

More than 400 7-Eleven stores across North America are closing their doors. The convenience store chain's parent company, Seven & I Holdings, announced this decision in a recent earnings report. The closures are due to several factors, including slow sales, decreased foot traffic, and the impact of inflation. This represents about 3% of the chain's total stores in the United States, Canada, and Mexico. The economic climate has led many middle- and low-income earners to be more cautious with their spending. Higher prices and interest rates, combined with a tough job market, have caused many people to cut back. This has resulted in a 7.3% drop in customer visits at 7-Eleven stores over the past six months. Another significant factor is the decline in cigarette sales. Once the top seller for convenience stores, cigarette purchases have dropped by 26% since 2019. Other nicotine products like Zyn haven't been able to make up for this loss. 7-Eleven sees these closures as part of a strategy to keep the chain efficient and profitable. They plan to open new stores in areas where customers want more convenience. Food has become the top-selling category in the U.S., and the company is focusing on investing more in this area. Competitors like Wawa and Sheetz have been scoring higher in customer satisfaction, especially in their food offerings. This has put pressure on 7-Eleven to improve its services. The news of these closures comes as Circle-K owner Couche-Tard has increased its takeover bid for 7-Eleven to $47.2 billion.

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