Monday, October 21, 2024

7E

Recent reports show that there are approximately 13,000 7-Eleven stores in North America, covering both the U.S. and Canada. Of these, around 9,402 are located in the United States, with California having the highest number—about 1,896 stores, making up roughly 20% of the total. In a significant development, 7-Eleven has announced plans to close nearly 450 underperforming stores across North America, representing about 3% of its overall locations. This decision reflects several challenges, including declining sales, inflation, and shifting consumer preferences, particularly a notable drop in cigarette sales.

The company’s CEO stated that inflationary pressures, reduced customer traffic, and evolving consumer habits have driven the decision to close these 444 locations. In August, 7-Eleven reported a 7.3% decline in foot traffic, continuing a downward trend. This decrease is attributed to low-income consumers becoming more cautious with spending amid inflation, high interest rates, and a weakening job market. To address these challenges, 7-Eleven will focus investments on higher-demand locations. This strategy follows an unsolicited takeover bid by Canadian rival Alimentation Couche-Tard, which owns Circle K. 

If successful, the acquisition would make Couche-Tard the world’s largest convenience store operator. In response to the bid, 7-Eleven’s parent company plans to split into two entities: one dedicated to 7-Eleven convenience stores and gas stations, and the other managing 31 less profitable retail operations. Couche-Tard has confirmed a revised takeover offer of over RM201 billion after the initial RM165 billion bid was rejected. If successful, it would mark the largest foreign buyout of a Japanese company to date, solidifying Couche-Tard’s industry dominance and signaling a bold move to outpace competitors. The stakes have never been higher.