7-Eleven to shutter over 400 locations across North America
Convenience store giant 7-Eleven announced it will be shuttering hundreds of locations across North America.
Joe DePinto, 7-Eleven Inc. president and CEO, announced the closures during an investor call for the chain’s parent company, Seven & i Holdings, earlier this month.
DePinto said in the second quarter of the year, 7-Eleven Inc. faced “sales and margin challenges.”
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He announced the company would shutter 444 underperforming North American stores but didn’t provide further details about their specific locations.
According to 7-Eleven, it has over 13,000 stores in Canada and the US.
Specifically in the US, DePinto said the company faces challenges with inflation, which puts pressure on consumers.
“Their purchasing habits are changing as more consumers are seeking discounts and are shifting channels to find value as well as choosing more private brand items.”
He also noted that the decline in cigarette sales was disrupting American sales.
DePinto highlighted that 7-Eleven is shifting its focus to investing in and expanding its snack and beverage modernization program to offer customers a wider assortment of hot food and specialty drinks.
“The first quarter of this year has been challenging. It’s been driven by macroeconomic conditions and evolving industry trends,” added DePinto.
Despite the company’s setbacks, the CEO said 7-Eleven is “confident in its long-term strategy and … optimistic about [its] future.”
Canadian company looking to take over 7-Eleven ownership
The news of store closures comes after an ongoing bid by Canadian convenience store giant Alimentation Couche-Tard Inc. (ACT) to take over 7-Eleven from Seven & i Holdings.
ACT owns the Circle K and Ingo brands and has over 16,700 convenience store and gas station locations in 31 countries.
The Quebec company’s offer was previously rejected by Seven & i for “grossly undervaluing” its worth.
However, ACT recently boosted its offer to US$47 billion, a 22% increase from its initial proposal in August.
The Japanese company says it currently owns 85,000 7-Eleven stores across the world and employs over 157,000 people.
Daily Hive has contacted 7-Eleven for further comment on how many Canadian stores will be impacted by the closures.