7-Eleven is set to shut down nearly 450 underperforming stores across North America, the company announced Thursday.
A decline in revenue, particularly cigarette sales, contributed to the convenience store chain’s closing of 444 locations, Seven & I Holdings, the company’s Japan-based parent company, announced in an earnings report, according to Fox Business.
Other reasons for the store closures include decreased traffic and inflation, the outlet reported.
7-Eleven closing nearly 450 underperforming stores https://t.co/kK8f9MGitj pic.twitter.com/MMD5eA17mT
— New York Post (@nypost) October 12, 2024
It is currently unknown which 7-Eleven stores will close and when the shut downs will occur.
7-Eleven has approximately 3,000 locations across the U.S. and Canada; the announcement will only affect three percent of the company’s portfolio, according to the outlet. (RELATED: 7-Eleven Customer Narrowly Dodges Death After Robbery Suspect’s Gun Jams)
“The North American economy remained robust overall thanks to the consumption of high-income earners, despite a persistently inflationary, elevated interest rate and deteriorating employment environment,” Seven & I Holdings said in an earnings release. “In this context, there was a more prudent approach to consumption, particularly among middle- and low-income earners.”
The convenience store chain has suffered traffic declines for six consecutive months, including a 7.3% plunge in August 2024, the outlet noted.
7-Eleven’s cigarette sales, once the largest source of revenue for convenience stores, fell 26% since 2019, according to the outlet.
The company plans to shift its focus to food, which has since become the highest-grossing product category, the outlet reported. 7-Eleven said in July it would sell popular international food items — including milk, bread, egg sandwiches and miso ramen — at its U.S. locations.