7-Eleven will close hundreds of stores across the U.S. and Canada, according to TODAY.com, CNN and Newsweek.
7-Eleven President and CEO Joe DePinto announced during a Thursday, Oct. 10 earnings call that the company will shut down 444 “underperforming stores,” according to the Seeking Alpha Oct. 11 transcript.
However, the exact locations were not released. The company has over 13,000 stores across North America, meaning only 3% of its stores will be closed, per CNN.
“Aligned with our long-term growth strategy, we continuously review and optimize our portfolio to deliver convenience where, when, and how customers need it,” a spokesperson for 7-Eleven told TODAY.com. “As part of this, we made the decision to optimize a number of non-core assets that do not fit into our growth strategy. At the same time, we continue to open stores in areas where customers are looking for more convenience.”
The convenience chain, owned by the Japanese company Seven & I Holdings, faced a “challenging” first half of 2024 and is experiencing the same inflationary pressures as restaurants, as well as a decrease in traffic.
Additionally, the convenience market has noticed a decline in demand for cigarettes. “From January to June, we gradually improved sales each month… excluding cigarettes,” DePinto said, according to Seeking Alpha. The sales of cigarettes has gone down by 26% in the past five years, with smokers either opting for other nicotine products or quitting.
The PEOPLE Puzzler crossword is here! How quickly can you solve it? Play now!
ANGELA WEISS/AFP via Getty
“Food recently overtook cigarettes as the largest category at 7-Eleven Inc.,” DePinto revealed. As a result, the company is ready to pivot and will provide customers with “high-quality food and services.”
“Growing our proprietary products is an important part of our future. This platform offers our customers a wider assortment of hot food and specialty beverages,” DePinto said. The company intends to add bake-in-store items, self-serve roller grills, grab-and-go cases, espresso, cappuccino, iced coffee and lattes.
Its recent decision came one day after Reuters reported that Circle-K owner Alimentation Couche-Tard, increased its bid for the company by $8 billion, reaching a total of $47.2 billion.
Never miss a story — sign up for PEOPLE’s free daily newsletter to stay up-to-date on the best of what PEOPLE has to offer, from celebrity news to compelling human interest stories.
A representative for 7-Eleven did not immediately respond to PEOPLE’s request for more information.
Read the full article here
