7-Eleven Faces Tough Times: 444 Stores Set to Close Due to Underperformance
In a significant move, 7-Eleven has announced plans to shut down 444 underperforming locations across North America, adding to the growing list of retail closures in recent months. The world’s largest convenience store retailer, owned by Seven & i Holdings, revealed this decision during its quarterly earnings presentation.
The closures are a response to the tough consumer spending environment, particularly affecting lower and middle-income earners. According to the company, shoppers have adopted a more cautious approach to spending, leading to a growing polarization of consumption amid declining labor incomes, inflationary pressures, and high interest rates.
Alongside these closures, 7-Eleven recently agreed to sell an undisclosed number of properties in North America through a sale-leaseback arrangement, anticipated to generate $520 million in profit, with the deal set to close in February 2025.
When asked for details regarding the locations that will close, a spokesperson stated that the decision was part of a strategy to optimize non-core assets not aligned with the company’s growth plans. Despite the closures, 7-Eleven plans to continue expanding, with over 270 new stores set to open in 2024.
This latest announcement follows previous cuts; in June, 7-Eleven disclosed plans to close over 270 stores, and 184 stores were shut down in 2023. If all planned closures proceed, 2024 will see 88 more store closures than the previous year, according to CBS News.
The news has sparked disappointment among customers. One shopper expressed concern on social media, questioning, “7-Eleven closing 270+ stores? We’re doomed.”
Slurpee Legacy
In the midst of these changes, it’s worth noting the beloved Slurpee, originally created by Omar Knedlik, which was introduced at 7-Eleven in 1966. Knedlik’s innovation began when he froze his sodas to keep them cold, leading to the creation of a slushy drink that would eventually become a staple at 7-Eleven locations nationwide. The iconic beverage has continued to evolve, with new and fun flavors capturing customers’ attention, maintaining the brand’s appeal over the decades.
