7-Eleven President and CEO Joe DePinto announced that the company will close over 400 stores this year during an October 11 earnings call.
The closure of 400-plus stores amounts to 3% of the chain's total of more than 13,000 stores in the U.S. and Canada, reported NPR.
“The first half of this year has been challenging. It’s been driven by macroeconomic conditions and evolving industry trends,” DePinto explained. In addition to inflation, DePinto noted that 7-Eleven was deeply impacted by a significant drop in cigarette sales, which has slipped 26% since 2019.
Today.com received an email statement from 7-Eleven: "Aligned with our long-term growth strategy, we continuously review and optimize our portfolio to deliver convenience where, when and how customers need it," the statement read. "As part of this, we made the decision to optimize a number of non-core assets that do not fit into our growth strategy. At the same time, we continue to open stores in areas where customers are looking for more convenience."
DePinto noted that the company aims to pivot its approach to what it provides on its shelves and self-service areas, Today reported, with a focus on foodservice.
“Food recently overtook cigarettes as the largest category at 7-Eleven Inc.,” DePinto said. The company has been investing heavily in its food and beverage modernization program to capitalize on this shift.
“Growing our proprietary products is an important part of our future. This platform offers our customers a wider assortment of hot food and specialty beverages,” DePinto explained, adding that the stores’ food and beverage updates will include bake-in-store items, self-serve stations, roller grills, grab-and-go options, and drinks like espresso, cappuccino, iced coffee and lattes, reported Today.com.
According to the NACS State of the Industry Report® of 2023 Data, foodservice, across all categories, contributed $60,578 in sales per store, per month, while cigarettes brought in $44,765 and packaged beverages $40,339.
In August, Alimentation Couch-Tard made a bid for 7-Eleven’s Japanese parent company 7 & i Holdings. After 7 and I Holdings rejected the original offer, Couche-Tard made a new offer that is about 20% higher than the previous one.