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7-Eleven has opted to close more than 400 of its chain convenience stores amid declining cigarette sales and customer traffic.
Officials at Japan-based Seven & i Holdings, the chain’s parent company, made the announcement during an earnings call last week, according to ABC News.
Several factors are leading to the closure of 444 stores, including inflation.
Economic changes have “impacted our sales and merchandise gross profit,” the company’s CEO and President Joe DePinto said on the call. There are more than 13,000 7-Eleven stores in North America. The closures impact stores located in the US and Canada and are slated to take place during the fourth quarter this year.
In August, the company reported a 7.3 percent decline in store traffic and recently said the cause was the “pullback of the middle - and low-income consumer,” ABC News reported.
The chain is widely known for its slurpee, an icy beverage similar to a slushy. To combat losses, the company plans to promote and grow certain elements of the business such as fresh food, beverages and the acceleration of digital and delivery.
Additionally, some of the company’s “non-core assets” are to be folded into a holding company named York Holdings, per Reuters. It will hold 31 subsidiaries.
The parent company is also going to change its name to “7-Eleven Corp” with the aim of focusing on its profitable convenience stores.
Investors are putting pressure on the chain’s Japan-based owner to increase value after it rejected a bid in August from the operator of Circle K, Alimentation Couche-Tard, saying it undervalued the company and its potential for growth.
