7-Eleven is set to close 444 underperforming stores across the United States, Canada, and Mexico due to declining sales, reduced foot traffic, and rising inflation. This move will affect around 3% of the convenience store chain’s 13,000 locations in North America.
Seven & I Holdings, the Japan-based parent company of 7-Eleven, announced the closures after reporting six consecutive months of declining store traffic, with a notable 7.3% drop in August. Inflation, high interest rates, and a weaker job market have caused middle- and low-income consumers to cut back on spending, which has affected the chain’s performance.
Cigarette sales, once a major revenue driver for convenience stores, have fallen by 26% since 2019. The rise of alternative nicotine products, such as Zyn, has not been enough to make up for the loss in traditional cigarette sales.
Despite these closures, 7-Eleven remains focused on expansion in other areas and will continue to open new locations where there is demand for more convenience. The company is also investing heavily in its food offerings, which have become its top-selling category. In response to growing competition from chains like Wawa and Sheetz, 7-Eleven plans to enhance its food options and customer experience.
While the exact locations of the closing stores have not been disclosed, the company described the move as part of a strategy to streamline operations and maintain profitability.
This announcement comes as 7-Eleven faces a $47.2 billion acquisition bid from Couche-Tard, the owner of Circle K, which is seeking to take over the convenience store chain.
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