
7-Eleven is set to close 450 underperforming stores across North America, the company announced Thursday. The decision follows a steep drop in cigarette sales and a decline in customer traffic, with Seven & I Holdings, the parent company, reporting a 26% drop in cigarette sales since 2019.
In addition to falling cigarette sales, inflation and other economic factors have led to reduced spending by middle- and low-income customers. Seven & I Holdings noted that while the economy remains strong for high-income earners, lower-income consumers are cutting back on purchases.
The company will close 444 stores, or about 3% of its North American locations, which include 3,000 stores in the U.S. and Canada. The exact locations of the closures have not yet been disclosed, and it is unclear when they will take place.
To counter declining cigarette sales, 7-Eleven has shifted its focus to food products, which have now become the company’s most profitable category. The chain announced earlier this year that it would begin offering international food items, including miso ramen, milk and egg sandwiches, at its U.S. stores.
Despite the closures, 7-Eleven is optimistic that focusing on high-demand products like food will help the chain remain competitive in the challenging retail environment.