The American economy under President Joe Biden continues to feel strain, as almost 450 7-Eleven stores are set to close nationwide for underperformance. The closures are a sign that the economy is not improving, despite claims by the Biden Administration and its allies that Americans' living standards are improving under his administration.
Seven & I Holdings, 7-Eleven’s parent company, which is based in Japan, announced the latest news in an Oct. 10 earnings report. The convenience store chain said that 444 7-Eleven locations, or 3% of its 13,000 stores across North America, will close due to a fall in sales, particularly in cigarettes, along with declining traffic and high inflation. The list of closing stores has yet to be released.
The company has witnessed six consecutive months of declining sales this year, including a 7.3% drop in August.
Cigarette sales, which were once the largest selling items for convenience stores, have crashed 26% since 2019. An attempt to shift to sales to other nicotine products has failed to improve the situation.
“The North American economy remained robust overall thanks to the consumption of high-income earners, despite a persistently inflationary, elevated interest rate and deteriorating employment environment,” Seven & I stated in its earnings release. "In this context, there was a more prudent approach to consumption, particularly among middle- and low-income earners."
7-Eleven told Fox Business that it will focus its sales more around food, which is currently the highest-selling category. Seven & I Holdings will continue to be "a world-class retail group centered around its food that leads retail innovation through global growth strategies centered on the 7-Eleven business and proactive utilization of technology," the company said. The convenience store chain plans to sell food items, such as milk, bread, egg sandwiches, and miso ramen, at its U.S. and Canada stores.
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A company spokesperson told CBS in a statement that the decision to shut the stores was about optimizing their portfolio. “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 spokesperson explained. "As part of this, we made the decision to optimize a number of noncore 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,” the spokesperson continued.
7-Eleven, which was founded in 1927 in Dallas, Texas, was acquired by Japan’s Seven & I Holdings in 1991 and is now one of the largest convenience store chains worldwide, with over 84,000 locations across the globe.
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