In a bold move to adapt to a changing market, 7-Eleven is set to close 444 stores across North America, marking one of the largest restructures in the iconic convenience chain’s history. Announced by parent company Seven & I Holdings, the closures are intended to cut underperforming locations from the 13,000-store portfolio across the U.S., Canada, and Mexico. This move comes as consumers shift spending habits due to high inflation, hitting middle- and low-income earners especially hard.
The decision reflects a pressing need to adapt to new economic realities, with rent, utilities, groceries, and fuel costs climbing more than 25% since 2019. Inflation and higher interest rates have reshaped consumer behavior, with 69% of shoppers now prioritizing quality and 60% seeking better value. Adding to the strain, 7-Eleven has also seen a stark 7.3% decline in foot traffic this year and a 26% plunge in cigarette sales, underscoring the impact of shifting lifestyle trends.
While 7-Eleven’s strategic plan includes these closures, the chain remains committed to growth. A spokesperson emphasized that they’re focusing on core areas with higher demand, reassuring customers that they’ll continue to expand where convenience is most valued. The closures are expected to yield $30 million in operating income this year, with an annualized boost of $110 million, helping the company stabilize during this transitional phase.
The restructuring aligns with Seven & I’s broader plans to split into two businesses, aiming to appease frustrated investors and stave off takeover attempts, according to Bloomberg. Despite the setback of these closures, the company is betting on its stronger locations to drive future growth in a challenging market.
