7-Eleven announced Thursday that it will close about 450 unprofitable stores across North America.
The company’s Japan-based parent company, Seven & i Holdings, announced in an earnings call that a decline in revenue, particularly cigarette sales, led to the closure of 444 stores at the convenience store chain. fox business.
Other reasons for the closure include decreased foot traffic and inflation, the store reported.
7-Eleven closes approximately 450 unprofitable stores https://t.co/kK8f9MGitj pic.twitter.com/MMD5eA17mT
— New York Post (@nypost) October 12, 2024
It is currently unclear which 7-Eleven stores will close and when.
7-Eleven has approximately 3,000 stores in the United States and Canada. According to the report, the announcement will only affect 3% of the company’s portfolio. (Related article: 7-Eleven customer narrowly escapes death after robbery suspect’s gun jams)
“Despite continued inflation, rising interest rates, and a deteriorating employment environment, the North American economy remained strong overall thanks to spending by high-income earners,” Seven & i Holdings said in its earnings release. “In this context, there has been a more cautious approach to consumption, especially among low- and middle-income earners.”
The convenience store chain has suffered six consecutive months of declines in foot traffic, including a 7.3% drop in August 2024, the store noted.
Cigarette sales at 7-Eleven, once the biggest source of revenue for convenience stores, have fallen 26% since 2019, the store said.
The company plans to shift its focus to food, which has become its most profitable product category, the newspaper reported. 7-Eleven announced in July that it would sell popular international foods such as milk, bread, egg sandwiches and miso ramen in its U.S. stores.
