7-Eleven has announced plans to close more than 400 underperforming stores across the United States, as revealed by its parent company, Seven & i Holdings, during a recent earnings call. This decision comes in response to declining sales and the effects of inflation. Let’s break down what this means and what you can expect.
Store Closures on the Horizon
By the end of this year’s fourth quarter, 444 stores of 7-Eleven will be permanently closed across the United States. The affected stores are part of the company’s larger network of more than 13,000 convenience stores spread across the entire circumference of the United States and Canada. However, 7-Eleven has not made the list of the addresses of the concerned stores available in the public domain.
These closures, however, are part of a larger scheme that aims at coping with the altered consumption patterns, economic strains and chronic alterations in the world of retail products. As inflation forces consumers to be more wary of their spending, 7-Eleven has experienced a reduction in foot traffic and general sales in those specific areas, particularly in some regions. As a result, the company has been forced to make painful and difficult selections to close certain locations.
Reasons Behind the Closures
The story of inflation has not spared 7-Eleven, given that it is a retail business like any other. As prices of goods increase, consumers are more cautious with their purchases. There has also been a marked decrease in the sale of tobacco products, particularly cigarettes, affecting the industry of convenience stores in every sector. The fall in tobacco which has been the core revenue for quite a number of stores has over-dependant on some of such stores’ performance.
Noticing such situations, various ways to make sure that the business does not stagnate have been employed by 7-Eleven. The company intends to diversify its offerings of private label goods by adding freshly prepared meals and branded drinks, which have attracted many customers recently. It also plans to improve digital as well as delivery services owing to the rising trend of online as well as contactless shopping.
Future Plans for Growth
Notwithstanding the closures, 7-Eleven’s attitude is one of growth in the other lines of business. A major aspect of this figure is the enhancement of its loyalty program that has worked well in bringing back customers. The corporation is also looking to improve on the distribution infrastructure, that is ensuring that the best performing branches are modernized and stocked appropriately.
In addition to these changes, 7-Eleven’s parent company, Seven & i Holdings, has plans to rebrand itself as “7-Eleven Corp”. This move is aimed at placing more focus on the company’s primary operations, which is running convenience stores.
The company is also putting together some of the non-core operations of the company under a new corporation to be known as York Holdings. York Holdings is the investment firm that incorporates outlets like Loft – a general merchandise outlet, Akachan Honpo, a retailer of children products and the franchisee of Denny’s in Japan.
What It Means for the Future
In recent years, the changes experienced in the retail sector have also forced the likes of 7-Eleven to adjust. Going through unfortunate store closures may be considered negative for business; however, the corporation manages to optimize its business operations and investments for the profitable areas and incorporates digital technologies for growth.
For loyal 7-Eleven fans, all these changes are meant to enhance your experience, whether with better products or easier delivery services. There will be information on which retail outlets may change and what new services will be offered in your local 7-Eleven.
