OAN Staff James Meyers
1:19 PM – Tuesday, October 15, 2024
Over 400 7-Eleven stores across North America will begin closing, according to an announcement from the Slurpee and convenience store chain.
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Seven & I Holdings, the Tokyo-based parent company of the chain, announced the news during an earnings call last week. The announcement explained that 444 low-earning locations will be closed due to inflation, slower consumer spending, and faltering cigarette sales.
“All of these have impacted our sales and merchandise gross profit,” the CEO and President Joe DePinto said on the call.
As a result of the “macroeconomic conditions and evolving industry trends,” DePinto added that the company has revised its earning guidance.
The Japanese-owned convenience store chain continued: “At the same time, we continue to open stores in areas where customers are looking for more convenience.”
Cigarette sales have decreased a staggering 26% since 2019, hitting an 80-year low, as consumers have switched to alternative nicotine products such as Zyn and flavored vapes.
Recently, the company also reported a 7.3% decline in store traffic in August and stated during its latest earnings report that the pattern corresponds with the “pullback of the middle-and low-income consumer.”
The total number of closures that are expected will account for over 3% of the 13,000 7-Eleven stores in North America.
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