Major convenience store chain 7-Eleven will close over 400 of its locations across North America, according to a report released by its Japan-based parent company, Seven & I Holdings. The closures will impact around three percent of the approximately 13,000 stores in the U.S. and Canada. This move comes as certain stores are experiencing declines in sales, reduced customer visits, and pressures from inflation—highlighted in the company’s quarterly earnings report.
Declining cigarette sales have significantly impacted revenue, with a 26 percent drop since 2019. Although alternative nicotine products have grown in popularity, they have not compensated for the decrease in cigarette sales, Seven & I Holdings noted.
Seven & I Holdings acknowledged that the North American economy is currently supported by expenditures from high-income earners despite ongoing inflation, high interest rates, and a challenging employment landscape. The company observed a trend of more cautious spending among middle-income and low-income consumers.
7-Eleven has not disclosed specific details on which stores will be closed or the timeline for the closures. A company statement mentioned the continuous evaluation and optimization of its store network as part of a broader growth strategy. The aim is to maintain service where and when it is needed while eliminating locations considered “noncore” to the company’s long-term objectives.
Inflation and rampant retail crime under the Biden-Harris government have wreaked havoc on the U.S. economy. Earlier this month, CVS—a major U.S. pharmacy and retail chain—announced it is laying off nearly 3,000 employees. The company also cited high inflation, declining consumption, and lost revenue due to theft as the cause of the layoffs.
.jpg){kind=link}
