Convenience store giant 7-Eleven is shutting down more than 400 underperforming stores across North America by the end of the year as a result of declining sales due to inflation.
What’s Going On with 7-Eleven Stores?
7-Eleven is pulling the plug on 444 stores across North America as it continues to struggle with inflation and falling sales, its parent company, 7 & i Holdings, revealed in an earnings presentation.
With more than 13,000 locations in the U.S., the Texas-based convenience chain will close underperforming stores by the end of the year and tighten its focus on fresh food, delivery, and digital growth.
Why Is 7-Eleven Closing Stores Now?
7-Eleven — like many restaurant chains — is also feeling the pinch from inflation, with sales slipping and store traffic dipping 7.3% in August 2024. In response, the company lowered its U.S. profit forecast and announced closures aimed at improving operating income by $30 million this year and adding $110 million to its annual run rate.
Where Will These Closures Happen?
While 7-Eleven hasn’t released a detailed list, the closures will target locations across the U.S. that aren’t hitting sales or traffic targets. The company will continue expanding in areas with stronger demand for convenience.
What Is 7-Eleven Doing to Restructure?
7-Eleven’s safety plan is to streamline operations to focus on its core convenience store business. The company plans to spin off non-essential assets, like supermarkets and specialty stores, into a new holding company called York Holdings Co. It’s also considering renaming itself “7-Eleven Corp.” to emphasize its focus on convenience stores.
How Is 7-Eleven Strengthening Its Financial Position?
The convenience chain secured a $750 million sale-leaseback deal for some properties, earning a $520 million profit.
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