7-Eleven To Close Hundreds Of Underperforming Stores

LONG ISLAND, NY — The parent company of 7-Eleven announced its plans recently to close more than 400 stores in North America.

The stores — 444 in all — are underperforming, according to an earnings report released Thursday by Seven & i Holdings Co., the Japanese company that owns the massive chain of convenience stores.

The company cited changing market dynamics in cigarettes, a 16 percent growth in delivery due to online sales, and higher prices from inflation that put pressure on consumer finances, as reasons for the poor performance by some stores.

Regional tobacco flavor bans in California and Massachusetts have led to illicit cigarette sales and a 26-percent decline in tobacco use since 2019, the company said.

The company said 62 percent of consumers live paycheck to paycheck, and another 34 percent saw reductions in government-provided food benefits.

The locations of the underperforming stores slated for closure were not disclosed. The convenience store chain is the largest worldwide, with 9,000 stores in the United States alone.

The company expects a $30 million operating income benefit from closing the unprofitable stores and believes that 7-Eleven is well-positioned to navigate the unique economic environment because its loyalty rewards program continues to grow. There are 97 million registered users, 9.5 percent of whom are high-frequency users.

The company believes the way to continue growing its loyal consumer base is to offer food items baked at the store, a self-serve roller grill, grab-and-go cases, and specialty beverages.

"Pullback in consumer spending has persisted beyond prior expectations," according to Seven & i Holdings' financial results ending Aug. 31. "Store traffic and sales growth impacted as consumers consolidate trips and reduce shopping occasions."

By adapting to structural shifts from changes in the nicotine business and preference for delivery and through the execution of strategic priorities, the company believes the 7-Eleven business will return to growth in 2025 and beyond.

"7-Eleven International LLC has plans to establish a store network of 50,000 stores in areas outside Japan and North America by the fiscal year ending Dec. 31, 2025, and to extend our presence to 30 countries and regions including Japan and North America by the fiscal year ending Dec. 31, 2030."