The Japanese parent company of 7-Eleven plans to shutter 444 underperforming locations across North America.
In a second-quarter report released Thursday, Seven & i Holdings noted that an industrywide drop in cigarette sales and a decline in consumer spending led to slower sales growth for its North American stores.
“There is a growing polarization of consumption due to a decline in labor incomes, which is a result of challenging employment conditions, as well as inflationary pressures and high interest rates,” Seven & i said in a separate release detailing the company’s financial results for six months ended Aug. 31.
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The CrowdStrike computer outage also affected 3,000 North American stores, costing the company $19 million.
Closing the 444 stores, the report said, would lead to an income benefit of $30 million. Seven & i didn’t specify a time frame or which locations would close.
Despite the closures, the company plans to open new locations in other areas.
“[We] continuously review and optimize our portfolio to deliver convenience where, when and how customers need it. 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,” 7-Eleven told CBS MoneyWatch.
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