7-Eleven admits plans to close down over 400 ‘underperforming’ locations in latest retail bloodbath
According to The Sun, 7-Eleven, the massive convenience store chain, has revealed plans to shut down 444 locations across North America, citing underperformance as the primary reason for this significant move. This decision comes amidst a challenging retail landscape, as the parent company, Seven & i Holdings, disclosed during its quarterly earnings presentation.
Impact of Consumer Spending Trends
The closures reflect the ongoing difficulties in the consumer spending environment, particularly affecting lower and middle-income earners. Seven & i Holdings noted that shoppers have adopted a more cautious approach to consumption due to declining labor incomes, inflationary pressures, and high interest rates. The company acknowledged that its North American stores are experiencing a “growing polarization of consumption.”
Focus on Growth Strategy
When asked about the specific locations slated for closure, a 7-Eleven spokesperson indicated that the decision was part of an effort to optimize non-core assets that do not align with the company’s growth strategy. Despite these closures, 7-Eleven plans to continue expanding by opening new stores in areas where demand for convenience is high. In fact, the retailer intends to launch over 270 new locations in 2024.
Recent Store Closures and Financial Moves
This announcement follows a June declaration that 270 stores would also be closing, and in 2023, 184 stores were shut down nationwide. If the upcoming closures occur as planned, the total number of store closures in 2024 will exceed last year’s tally by 88 locations.
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Interestingly, Seven & i Holdings recently agreed to offload an undisclosed number of properties in North America through a sale-leaseback deal, expected to close in February 2025, generating an impressive profit of $520 million.
Customer Reactions and Nostalgia
The news of these closures has left some loyal customers concerned about the future of their favorite convenience store. One shopper expressed dismay on social media, questioning, “7-Eleven closing 270+ stores? We’re doomed.”
The Slurpee Legacy
While 7-Eleven navigates these challenges, it continues to be famous for its iconic Slurpee. Originally created by Omar Knedlik, the Slurpee began as a happy accident when a malfunctioning soda fountain led him to freeze carbonated drinks. In 1965, 7-Eleven struck a licensing deal with Knedlik to sell this frozen beverage under its new name. By the spring of 1967, every 7-Eleven in the U.S. had a Slurpee machine, and the chain began introducing playful names for new flavors, such as Pink Fink, Moonshine, and Gully Washer.
7-Eleven celebrated its 75th anniversary on July 11, 2002, with the first official Free Slurpee Day, a testament to its enduring popularity.
