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7-Eleven, the world’s largest convenience store chain, has announced plans to close 444 underperforming locations across North America including Canada. The closures are a result of lower sales “as consumers pull back due to inflationary pressure”, declining traffic, and cigarette sales on the fritz.
In a statement, 7-Eleven said that the decision to close the stores was a difficult one but necessary to ensure the company’s long-term profitability. The company did not specify which specific locations would be affected.
The closures are expected to begin later this year and will be completed over the next several months. 7-Eleven said that it will work with affected employees to help them find new jobs.
The closures come as 7-Eleven faces increasing competition from other retailers, including grocery stores, gas stations, and online retailers. The company has also been struggling to adapt to changing consumer preferences, such as a growing demand for healthier food options and more convenient delivery services. The chain has had a 7.3% decline in traffic in August, it’s sixth straight month in the red.
Since 2019, cigarettes sales have fallen by 26% despite customers shift to purchase other nicotine products like, electronic cigarettes.
The parent company, Seven & i Holdings is doing some restructuring and plans to rename itself ‘7-Eleven Corp’.
This news comes as competitors like Wawa, Quick Check, and Sheetz are ranking higher with customers than 711 as they focus on improving their made-to-order food business and loyalty programs…even giving the fast food industry a run for their money.
7-Eleven was founded in 1927 as a small ice house in Dallas, Texas. The company’s name was derived from its original hours of operation, 7 a.m. to 11 p.m. 7-Eleven quickly expanded and became known for its convenience and 24-hour service.
In the 1960s, 7-Eleven began franchising its stores and quickly became a global brand. Today, 7-Eleven operates over 70,000 stores in 17 countries.
