7-Eleven Closing Hundreds of Stores, as Parent Company Restructures Business
7-Eleven, Inc. is shuttering 444 underperforming stores across North America. Parent company Seven & i Holdings disclosed the closings in its latest earnings report, citing lower traffic and sales and a downturn in what had been a once-steady cigarette business. Traffic has been down for six consecutive months.
The move follows a recent takeover bid by Alimentation Couche-Tard Inc., the Quebec-based owner of the competing Circle-K chain. Couche-Tard recently upped its offer to $47.2 billion for the 7-Eleven business after Seven & I rebuffed an earlier $38.5 billion buyout.
Currently, 7-Eleven operates more than 13,000 locations in the United States, Canada and Mexico. The closings impact about 3% its total footprint and the company estimates that the move will result in a $30 million operating income benefit for 2024.
Tokyo, Japan-headquartered Seven & i Holdings reported that the 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.” The organization emphasized 7-Eleven’s four priorities of growing proprietary products, accelerating digital and delivery initiatives, generating synergies from the integration between 7-Eleven and Speedway and the expansion of store networks.
As it focuses on new growth opportunities, the parent company explained that it is working to transform existing locations into “food-focused convenience stores.” E-comm is becoming a greater priority, too, as Seven & i shared that it is expanding the 7NOW service to deliver in as little as 20 minutes with in-store inventory updated in real time.
Additional changes are internal, as Seven & i reported that 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.
Based in Irving, Texas, 7-Eleven Inc operates, franchises and/or licenses more than 13,000 stores in the United States and Canada. In addition to 7-Eleven stores, the company operates and franchises Speedway, Stripes, Laredo Taco Company, and Raise the Roof Chicken and Biscuits locations. It is No. 24 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America. Alimentation Couche-Tard's U.S. operations are No. 14 on PG’s list.
