By ChinRes 
7-Eleven, a network of convenience stores, has joined the terrible list of businesses that have shut down, which is a continuation of a run of closures by national and regional food merchants.
In a quarterly financial presentation that took place on October 10, the parent company of the chain, 7 & i Holdings, made the announcement that it will be closing 444 stores across North America that are not currently functioning well. There was no disclosure made by the firm regarding the locations of the stores that are scheduled to be shut down.
According to Restaurant Business, 7-Eleven outlets in North America have been experiencing negative traffic since the beginning of 2023, and in August, traffic has decreased by a further 7.3%. The network of convenience stores is experiencing difficulties due to the pressures of inflation as well as a decrease in the market for cigarettes. 13,000 7-Eleven sites are now in operation in the United States of America and Canada, as stated on the corporate website.
As a result of the closures, the parent business anticipates a gain of thirty million dollars in operating income and an increase of one hundred and ten million dollars in yearly run rate.
A statement that was included in 7 & I’s results announcement stated that the company is now dealing with a “tough consumer spending environment, especially with lower- and middle-income earners.” The organization also stated, “There is a growing polarization of demand due to a decline in labor earnings, which is a result of challenging job conditions, as well as rising inflation and high interest rates.”
A sale-leaseback agreement was reached between the firm and a number of its properties located in North America, and the agreement was signed by the company one month ago. Despite the fact that 7 & I did not reveal the specific sites that it would be closing, the company stated that it will finish this transaction by February 2025. It is anticipated that this transaction would result in a profit of $520 million for the corporation.
Competition Alimentation Couche-Tard, which is the owner of the convenience store chain Circle K, has made a bid to acquire the company, which has resulted in the recent announcement of closures. Following 7 & I’s rejection of the corporation’s original offer, the company is now making a proposal of $47.2 billion.
Also, 7 & I has stated that it intends to establish York Holdings Co., which will be a distinct company that will be dedicated to its operations that are not related to convenience shops, such as supermarkets and specialty stores.
A number of prominent retailers have announced widespread closures in recent months, and this is not the only one. It was announced in June that Walgreens intends to shutter a “significant portion” of locations that are not operating well over the course of the next three years. According to Walgreens’ Chief Executive Officer Tim Wentworth, the company “continues to face a difficult operating environment.”
The announcement that 99 Cents Only, a cheap regional retailer, will be shutting all 371 of its locations in the states of Arizona, California, Texas, and Nevada was made in the month of April.
The store stated that this decision was made due to the “unprecedented impact of the COVID-19 pandemic, shifting demand from customers, rising levels of shrink, continuing inflationary pressures, and other macroeconomic headwinds.” The shop also mentioned that these circumstances had “greatly hindered the company’s ability to operate.”