7-Eleven Announces Closure Of 450 Stores As Sales Drop

7-Eleven is set to close 450 of its stores across North America due to declining sales and shifting consumer habits, the company revealed on Thursday. The Japan-based parent company, Seven & I Holdings, reported that shrinking cigarette sales, a drop in foot traffic, and ongoing inflation have contributed to the decision to close 444 underperforming stores.

Cigarette sales have declined by 26% since 2019, removing a key source of revenue for convenience stores like 7-Eleven. This, combined with a 7.3% decrease in customer traffic in August 2024, prompted the company to take action. The closures will affect around 3% of the company’s 3,000 locations in the U.S. and Canada.

While the specific stores slated for closure have not been announced, Seven & I Holdings acknowledged that economic factors have played a major role in the downturn. “Middle- and low-income consumers have become more cautious in their spending,” the company stated, adding that high-income earners have continued to drive some economic activity, but inflation and rising interest rates have had a negative impact on overall consumption.

In response to these challenges, 7-Eleven has shifted its focus from cigarettes to food, which is now its top-selling category. Earlier this year, the company began offering popular international food products like egg sandwiches, milk, and miso ramen at its U.S. stores, signaling a change in its business strategy.

Though the store closures will affect only a small percentage of the chain’s locations, they reflect larger trends in the convenience store industry. Consumers are moving away from products like cigarettes, and companies like 7-Eleven are adapting by focusing more on food and other high-demand items.