7-Eleven Parent Company to Shutter 400-Plus Stores in North America
TOKYO — 7-Eleven Inc. remains a top convenience store chain in North America, but its parent company, Seven & i Holdings Co. Ltd., plans to trim its store count by 444 locations.
The "underperforming" stores were selected based on current strategic long-term plans, the company shared during its Oct. 10 earnings call. 7-Eleven currently operates more than 13,00 c-stores in the United States, Canada and Mexico. A list of specific stores slated for closure was not immediately released.
In its earnings report for the six months ended Aug. 31, Seven & i noted that while the North American economy is generally in a good state, this is not the case across all income levels, which contributed to multiple months in a row of declining foot traffic.
[Read more: Seven & i Holdings Plans Business Breakup]
"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 wrote in the earnings report. "In this context, there was a more prudent approach to consumption, in particular among middle- and low-income earners."
The company noted that a pullback in consumer spending has persisted beyond its previous expectations, impacting both store traffic and sales growth as consumers consolidate trips and reduce shopping occasions. Seven & i is also adapting to structural shifts from changes in the tobacco category and a shift to other nicotine products.
In such an environment, Seven & i is adjusting its approach as it continues efforts to be "a world-class retail group centered around its food that leads retail innovation through global growth strategies centered on the 7-Eleven business and proactive utilization of technology."
On the foodservice front, the company's improvement plans include launching new, innovative, high-potential categories and items, while accelerating food and beverage modernization rollouts and driving traffic through strong value offers. It also has the goal of growing proprietary product sales.
On the backend, Seven & i plans to continue Speedway stores' conversion to a proprietary retail system that enables a customized assortment for individual stores based on local demand. The company seeks to offer a unified customer experience across banners while maximizing store margins and profitability.
7-Eleven Inc. is No. 1 on the 2024 Convenience Store News Top 100 report.