7-Eleven will close nearly 450 of its stores across North America after experiencing a decline in sales, the company announced on Thursday. The closures, which will affect underperforming locations, are a response to falling revenue, decreased foot traffic, and the ongoing impact of inflation.
The chain’s parent company, Japan-based Seven & I Holdings, cited a 26% drop in cigarette sales since 2019 as a major factor behind the decision. Cigarettes were once the leading source of revenue for convenience stores, but as sales have fallen, 7-Eleven has seen a steady decline in profits.
While the company did not specify which stores will close or when the closures will take place, the 444 affected stores account for roughly 3% of 7-Eleven’s North American portfolio, which includes about 3,000 locations in the U.S. and Canada.
In an earnings statement, Seven & I Holdings said, “Middle- and low-income consumers are being more cautious with their spending due to persistent inflation and rising interest rates,” adding that the North American economy remains strong overall thanks to high-income earners.
Despite the challenges, 7-Eleven is shifting its focus toward its food offerings, which have become the chain’s highest-grossing category. The company announced plans to introduce more international food items in its U.S. stores, including products like miso ramen, egg sandwiches, and milk.
The closures are part of a broader strategy to adapt to the changing convenience store market. As cigarette sales continue to decline, companies like 7-Eleven are betting on food and other products to drive future growth.
