7-Eleven Announces Major Closures For Over 400 Stores

The Japanese-owned retail giant, Seven & I Holdings, announced a significant closure plan targeting over 400 underperforming 7-Eleven stores across North America.

This decision reflects a confluence of economic pressures and changing consumer habits that are challenging the traditional convenience store model.  

The Numbers Don Traffic and Sales

The closures represent roughly 3% of 7-Eleven's vast North American network, encompassing over 13,000 stores in the U.S. and Canada. The company cited "slowing sales, decreased traffic, and inflation" as primary reasons behind the closures.

An earnings report from Seven & I Holdings revealed a 7.3% decline in customer traffic at North American stores in August 2024, a worrying trend that contributed to the decision.  

Economic Pressures

Inflation, a major concern for consumers nationwide, is impacting 7-Eleven's bottom line. Rising costs of goods and supplies are squeezing profit margins while concurrently diminishing customer spending power.

High gas prices are also a factor, as they deter consumers from making frequent convenience store visits, which are often associated with car-based errands.  

Beyond the economy, 7-Eleven faces challenges related to evolving consumer preferences. The rise of online grocery delivery services and larger supermarket chains offering extended hours and wider product selections has chipped away at the convenience store's unique value proposition.

Consumers are also increasingly health-conscious, and the traditional 7-Eleven fare of sugary drinks, processed snacks, and microwavable meals may not hold the same appeal for health-focused shoppers.  

The Decline of Cigarettes

A notable factor in declining sales is the shrinking market for cigarettes, a product that once generated significant revenue for convenience stores. Anti-smoking campaigns and rising cigarette taxes have led to a sustained decline in cigarette consumption.

As a result, 7-Eleven is losing a vital income stream that previously helped offset the lower profit margins of other products.  

Can 7-Eleven Make a Comeback?

To survive, 7-Eleven may need to reinvent itself. This could involve introducing healthier food options, offering fresh produce and prepared meals made with quality ingredients. Integrating with online ordering and delivery platforms might be crucial to cater to changing consumer behavior.

Additionally, focusing on fresh food options and catering to specific needs, such as offering healthy breakfast choices for on-the-go professionals or quick meal solutions for busy families, could attract a broader customer base.