7-Eleven To Close More Than 400 Stores
7-Eleven Inc. is closing 444 underperforming stores in North America as the convenience store chain cited lower traffic and sales along with a downturn in its cigarette business as key reasons for its decision.
With 13,000 locations in the U.S., Canada, and Mexico, the store closures impact about 3% of its 13,000 locations across the region. The announcement also comes after Alimentation Couche-Tard Inc. boosted its buyout offer to 7-Eleven parent Seven & i Holdings to $47.2 billion, up from an earlier offer of $38.5 billion.
Officials with the company said the convenience store chain is pursuing sustained business growth and enhanced capital efficiency in the context of a tough consumer spending environment, particularly among young and middle-income earners.
Additionally, Seven & i Holdings is focused on four priorities to grow its business. They include expanding its assortment of proprietary products, accelerating digital and delivery initiatives, generating synergies from the integration between 7-Eleven and Speedway, and the expansion of store networks.
The company is also working to transform existing locations into “food-focused convenience stores.” E-comm is also becoming a greater priority as Seven & i shared that it’s expanding the 7NOW service to deliver in as little as 20 minutes with in-store inventory updated in real-time.
Seven & i also said it plans to change the holding company name to 7-Eleven Corporation, which will focus on that convenience and fuel business. The Japanese firm intends to consolidate its other retail operations under a separate business umbrella called York Holdings Co.
