7-Eleven is set to close hundreds of stores across North America as part of a strategic effort to optimize its portfolio, the company announced this week. According to Seven & I Holdings, 7-Eleven’s Japan-based parent company, a total of 444 locations will be shutting their doors. This decision follows a challenging year marked by slow sales, reduced customer traffic, inflation, and a significant drop in cigarette purchases.
With over 13,000 locations in the U.S. and Canada, these closures account for about 3% of 7-Eleven’s North American presence. However, the retailer has been tight-lipped about specific details, declining to release a list of which stores will close or provide a timeline for the closures. The company explained that the move is part of a larger plan to align with its “long-term growth strategy” by trimming noncore assets. Despite the closures, 7-Eleven emphasized that it plans to continue expanding in areas where there is more demand for its convenience offerings.
One of the most striking factors behind the closures is a steep decline in cigarette sales, historically a major revenue stream for convenience stores. Since 2019, cigarette sales have fallen by 26%, and while other nicotine products have emerged, they haven’t been able to offset the losses. The impact of inflation and high interest rates has also squeezed middle- and low-income consumers, leading to a more cautious approach to spending. This shift has hit convenience stores especially hard, as customers seek to cut back on non-essential purchases.
The decision to shutter these locations comes as 7-Eleven looks to refocus on markets with stronger growth potential. Despite the financial struggles impacting some of its stores, the company continues to hold a dominant position in the convenience store market, particularly in Japan, where it operates over 21,000 outlets. In North America, the chain is adapting to changing consumer behaviors and attempting to cater to more affluent shoppers who are less affected by economic downturns.
While 7-Eleven’s closures may be unsettling for communities losing their local store, the company insists it’s part of a broader effort to strengthen its brand. In a statement to CBS MoneyWatch, 7-Eleven explained, “We continuously review and optimize our portfolio to deliver convenience where, when, and how customers need it. At the same time, we continue to open stores in areas where customers are looking for more convenience.”
As the retail landscape evolves, 7-Eleven’s strategy reflects the balancing act that many chains face: shutting down underperforming locations while seeking new opportunities in more promising areas. For now, the iconic convenience store brand remains committed to staying competitive, even if it means trimming down to build back up.
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