OAN Staff James Myers
1:19 PM – Tuesday, October 15, 2024
More than 400 7-Eleven stores across North America will begin closing, the Slurpee and convenience store chain announced.
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The chain's Tokyo-based parent company, Seven & i Holdings, announced the news during an earnings conference last week. The announcement said 444 low-profit stores will be closed due to inflation, weak consumer spending and weak tobacco sales.
“All of this is impacting our sales and gross merchandise margins,” CEO and President Joe DePinto said on a conference call.
DePinto added that the company revised its earnings outlook as a result of “macroeconomic conditions and evolving industry trends.”
The Japanese convenience store chain continued, “At the same time, we continue to open stores in areas where our customers are seeking greater convenience.”
Cigarette sales have fallen a staggering 26% since 2019, the lowest level in 80 years, as consumers turned to alternative nicotine products such as Zyn and flavored e-cigarettes.
The company also recently reported a 7.3% drop in foot traffic in August, and said in its latest earnings call that this pattern corresponds to a “backlash among middle- and low-income consumers.” .
The total number of expected closures represents more than 3% of the 13,000 7-Eleven stores in North America.
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