Popular convenience store chain 7-Eleven joins many other chains in closing hundreds of locations in multiple countries in North America. Seven & i Holdings, its parent company, continues to try to avoid a takeover by Alimentation Couche-Tard.
This latest 7-Eleven revelation was announced last week during Seven & i Holdings’ earnings presentation. According to the parent company, about 444 locations will be closed in the future.
7-Eleven Shutters Hundreds of Stores
All of these 444 shuttered locations will be located in North American countries. While Canada and Mexico will see some closures, the United States will have the most convenience stores shut down.
So far, 7-Eleven’s parent company hasn’t explained which exact stores will be closed. However, Seven & i has explained that they’re targeting underperforming locations. These specific stores will be closed down in the near future.
Instead of focusing on these underperforming stores and trying to revitalize them, Seven & i instead will concentrate on opening up new 7-Eleven stores in locations that may see higher demand.
The decision to close hundreds of 7-Eleven stores comes after a recent report revealed that the convenience store chain had seen its traffic in North America drop by a whopping 7.3% in August. This new data added to the chain’s difficulties, as traffic has remained negative since the beginning of 2023.
Though this data has led to these store closures, Seven & i has explained that shuttering old locations — and opening up new ones — will be good for the business. They’ve also stated that their negative traffic isn’t different from what other similar industries are currently going through, thanks to high inflation.
A Positive Future for 7-Eleven?
Though the closure of hundreds of locations may seem as if 7-Eleven is headed for bankruptcy, Seven & i Holdings has claimed that this move instead will help bring in more money.
According to recent data, these store closures could help bring in $30 million in operating income benefits. The chain may also soon work on a deal that could net the company a profit of about $520 million if it sells some of its properties in North America.
These maneuvers could help Seven & i continue to avoid Alimentation Couche-Tard’s takeover bid attempt. Alimentation Couche-Tard is currently trying to acquire the company by offering about $47.2 billion.
As Seven & i Holdings closes down 7-Eleven stores and attempts to avoid this takeover, the parent company is also looking to create a new company. This new company will be dedicated to running the group’s supermarkets and other non-convenience store businesses.
In a recent statement, 7-Eleven Inc explained their decision to close down more than 400 locations. The company said, “Aligned with our long-term growth strategy, we continuously review and optimize our portfolio to deliver convenience where, when and how customers need it. 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.”
