new york – Hundreds of “unprofitable” 7-Eleven stores across North America will close, the convenience store announced.
The chain’s Japan-based parent company, 7&i Holdings, said in an earnings call Thursday that 444 7-Eleven stores are closing due to a variety of issues, including weak sales, declining foot traffic, inflationary pressures and a decline in tobacco sales. I made it clear that I was doing it. Purchased item.
A specific list of closed stores was not immediately released. The chain has more than 13,000 stores in the U.S., Canada and Mexico, and the closings represent 3% of its portfolio.
Seven & i said in its financial results that the North American economy is “strong overall,” but that persistent inflation, high interest rates, and “interest rates” are causing middle- and low-income groups to take a “more cautious approach to consumption.” He said he noticed it. “Deterioration of the employment environment.”
These factors combined to cause traffic to decline by 7.3% in August, halting six consecutive months of decline.
The company also noted that cigarette purchases, once the biggest sales category for convenience stores, have fallen 26% since 2019. A noticeable shift in sales to other nicotine products like Zyn hasn’t made up for the difference.
7-Eleven told CNN in a statement that it is “continuously reviewing and optimizing its portfolio” and that the store closures are part of its growth strategy, adding that the chain is “continually reviewing and optimizing its portfolio” and that the chain is “growing “We will continue to open stores in the future,” he added.
Neil Saunders, a retail industry analyst and managing director at GlobalData Retail, said the 444 store closures were “a gentle pruning to keep the chain efficient and profitable.”
“Stores that are closed are likely experiencing a disproportionate drop in foot traffic and customers as consumers battle rising food prices and buy less,” Sanders told CNN. . “Increasing competition from online and value stores will also be a major blow as consumers seek lower prices in some regions.”
Meanwhile, 7-Eleven said it will continue to invest in food in the U.S., as it is now the category with the highest sales and the most attraction for customers. A recent study found that competitors like Wawa and Sheetz have higher customer satisfaction scores across products, while 7-Eleven ranks much lower.
The company’s latest financial results came amid a takeover bid by Circle K owner Couche-Tard, which this week increased its offer by $8 billion to $47.2 billion.
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