Convenience store giant 7-Eleven is set to close over 400 locations in North America, with the parent company, Seven & I Holdings, attributing the decision to slowing sales, declining traffic, inflationary pressures, and a decrease in cigarette purchases.
The big picture: Although a specific list of the stores to be closed was not released, 7-Eleven said the closures will affect 3% of the company’s portfolio.
- The chain also operates over 21,000 shops in Japan and will continue to invest in food in the United States, focusing on high-selling categories like milk, bread, egg sandwiches, and miso ramen.
Driving the news: The announcement follows a shift in consumer behavior away from traditional cigarette purchases, which have dropped by 26% since 2019, leading 7-Eleven to invest more in alternative nicotine products and food offerings.
- The chain’s decision is in response to the North American economy’s more prudent approach to consumption, particularly among middle- and low-income earners, despite a robust overall economy driven by high-income earners.
