7-Eleven: Strategic Realignment and Store Closures in the USA

The world-renowned convenience store giant 7-Eleven is planning a significant restructuring of its store network in the USA. During its recent earnings conference, the company announced that more than 400 underperforming stores are to be closed. This measure affects a portion of the total 13,000 locations that 7-Eleven operates in the USA and Canada and is set to be implemented in the fourth quarter of this year. A list of the affected stores has not yet been published. The background to the closures is a decline in customer footfall and sales due to the current high inflation, which is placing a financial burden on consumers. Additionally, the industry is generally experiencing a decline in cigarette sales, which is also impacting 7-Eleven's revenues. To counteract this, 7-Eleven plans to expand its range of private label products such as fresh food and beverages, while also enhancing its digital offerings and delivery services. The focus will be on further developing its own loyalty program and optimizing its store network. In addition, the parent company Seven & i Holdings plans to rename itself as "7-Eleven Corp" to emphasize the focus on its core business, and to spin off several “non-core” assets into a new holding called York Holdings. This new holding is expected to include 31 subsidiaries, including supermarkets, household goods retailers, baby product stores, and the Japanese equivalent of Denny's restaurants. These measures take place amid a takeover bid by Alimentation Couche-Tard, the operator of Circle K stores, which was previously rejected by Seven & i Holdings as they assessed the company and its growth potential as undervalued.