7-Eleven shutting down nearly 450 underperforming stores across North America | FOX Business
The iconic convenience store chain 7-Eleven is closing nearly 450 underperforming stores across North America. The parent company, Seven & I Holdings, announced in its latest earnings report, attributing the closures to a drop in sales, particularly from cigarettes, as well as decreased customer traffic and inflation. While the closure of 444 stores may sound like a big number, it only affects about 3% of 7-Eleven’s 13,000 locations in the U.S. and Canada. Still, with six straight months of declining foot traffic and a sharp 7.3% dip in August, it’s clear that the company is facing some challenges.
A big factor in these struggles is the decline of cigarette sales, which were once a major source of revenue for convenience stores. Since 2019, cigarette sales have plummeted by 26%, and other nicotine products haven’t managed to fill the gap. The economic environment isn’t helping either. According to Seven & I Holdings, middle- and low-income consumers have become more cautious with their spending due to inflation, high interest rates, and job market concerns.
But 7-Eleven isn’t just sitting back. The company is shifting gears, aiming to transform its stores into food-centric hubs. Food sales are now their biggest moneymaker, and they’re betting on this category for future growth. 7-Eleven has big plans to roll out popular international food items, like miso ramen and egg sandwiches, at U.S. locations, hoping to attract more customers with these fresh, global offerings.
Seven & I Holdings has its sights set on bigger goals as well. The company is looking to lead innovation in retail through its global strategies and use of technology, all while continuing to grow the 7-Eleven brand worldwide. They’re positioning themselves as a leader in the food retail space, eager to adapt to shifting consumer habits and the new economic landscape…….
[read more]
Rising Dough
How does the shift in consumer habits—like moving away from cigarette purchases—impact businesses, investors, and shareholders in companies that rely on convenience store sales for growth? What ripple effects might we see in the broader economy when a large chain like 7-Eleven adjusts its business model to focus more on food products?
*Click on the “Full Loaf” icon to read the full article! After you read the full article, let us know your thoughts.
☕️ **Discover Stone Street Coffee Company – Your Coffee Haven!**
Today’s Dough readers, if you’re on the hunt for exceptional coffee and cold brew, look no further than Stone Street Coffee Company. We at Today’s Dough are smitten with their rich coffee blends and refreshing Cold Brew. Stone Street’s commitment to quality shines through in every sip. Now, exclusively for our readers, click the banner above to snag a $5 off coupon on your next order. Experience the finest, ethically sourced beans roasted to perfection. Join the Stone Street community, savor top-notch coffee, and elevate your daily brew. ☕️🌟
Share this content:
