7-Eleven has announced the closure of 444 underperforming stores across North America as it faces declining foot traffic and inflationary pressures. The convenience store chain, which operates 13,000 locations in the U.S. and Canada, has seen traffic drop further by 7.3% this August, contributing to its financial struggles. The chain’s parent company, 7&i Holdings, cited a tough consumer spending environment, particularly among lower- and middle-income earners, due to inflation, high interest rates, and challenging employment conditions. Despite these closures, 7-Eleven expects a $30 million boost in operating income and a $110 million increase in annualized run rate, as it seeks to navigate the current economic landscape.
As part of its efforts to streamline operations, 7-Eleven has entered into a sale-leaseback agreement for some of its North American properties, expecting to generate $520 million in profit by February 2025. The company, which recently announced the closure of 444 underperforming stores, is also facing a takeover bid from rival Alimentation Couche-Tard, the parent company of Circle K. While 7-Eleven has rejected an initial offer of $47.2 billion, it continues to grapple with economic challenges, including inflation and decreased consumer demand. The convenience store chain is also creating York Holdings Co. to focus on its non-convenience store businesses. These closures follow similar announcements from major retailers like Walgreens and 99 Cents Only, highlighting the widespread impact of inflationary pressures and shifting consumer behaviors in the retail industry.
