Like its iconic retro sign, 7-Eleven is known for hot dogs on roller grills and Slurpees—especially when they’re free on July 11 every year. But just last week, the parent company of the convenience store, Seven & i Holdings, announced that it would be closing hundreds of 7-Eleven locations. According to a quarterly presentation dated October 10, 444 “underperforming stores” in North America are expected to close by the end of the year.
What could this mean for the convenience store giant?
In addition to 7-Eleven, several longstanding chains have also been hit with recent closures. Red Lobster closed hundreds of restaurants and filing for bankruptcy before being purchased by an investment company. While the iconic Endless Shrimp deal was only part of the reason for revenue losses, it doesn’t seem like free Slurpees have anything to do with 7-Eleven’s closures.
According to the presentation, the factors impacting sales include growth of delivery and 62% of their consumers living paycheck to paycheck. Another reason is declining tobacco use. The report cites a 26% decline in cigarette use since 2019.
But closing 444 out of 13,000 stores in North America is just one action listed in the company’s plan for “long-term success” in North America. It also lists growing proprietary products, accelerating digital and delivery, growing store network, and improving efficiencies and cost leadership.
“Aligned with our long-term growth strategy, we continuously review and optimize our portfolio to deliver convenience where, when, and how customers need it,” 7-Eleven told Delish when asked for comment.
The company said they are removing stores that “do not fit into our growth strategy” and added that “we continue to open stores in areas where customers are looking for more convenience.”
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