As well as its iconic retro signage, 7-Eleven is known for its roller-grilled hot dogs and Slurpees, especially during their annual freebie on July 11th. But just last week, the convenience store’s parent company, Seven & i Holdings, announced it would close hundreds of 7-Eleven stores. According to the company’s quarterly earnings release dated October 10, 444 “unprofitable” stores in North America are expected to close by the end of the year.
What does this mean for the convenience store giant?
In addition to 7-Eleven, several long-established chains have also experienced closures recently. Red Lobster closed hundreds of restaurants and filed for bankruptcy before being acquired by an investment firm. While the iconic Endless Shrimp deal is only part of the reason for the revenue loss, the free Slurpee appears to have nothing to do with 7-Eleven’s closing.
ANGELA WEISS / Contributor / AFP – Getty Images
According to the presentation, factors impacting sales include increased deliveries and the fact that 62% of consumers are living paycheck to paycheck. Another reason is the decline in tobacco use. The report states that cigarette use has decreased by 26% since 2019.
But closing 444 of its 13,000 stores in North America is just one of the actions listed in the company’s plan for “long-term success” in North America. It also lists growth in proprietary products, accelerated digitalization and delivery, expanded store network, and increased efficiency and cost leadership.
When asked for comment, 7-Eleven said, “In line with our long-term growth strategy, we continually review and optimize our portfolio to deliver convenience where, when and how our customers need it.” told Delish.
The company said it was eliminating stores “that don’t fit with our growth strategy,” adding that it “continues to open stores in areas where customers are looking for more convenience.”
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