7-Eleven to Shut Down Over 400 Underperforming Stores Amid Retail Crisis

According to The Sun, In a significant move amidst the ongoing retail crisis, 7-Eleven has announced plans to close down 444 of its convenience store locations in North America. This decision follows the company’s quarterly earnings presentation by its parent company, Seven & i Holdings, which indicated that the closures are part of a strategy to eliminate underperforming stores.

The closures come at a time when the convenience store giant is facing tough consumer spending conditions, particularly impacting lower and middle-income earners. Seven & i Holdings noted that shoppers have adopted a more cautious approach to spending, which has led to a “growing polarization of consumption” due to inflation and challenging employment conditions.

In addition to the store closures, the company recently engaged in a sale-leaseback agreement for an undisclosed number of properties in North America, projected to generate $520 million in profit. This deal is expected to finalize in February 2025.

When pressed for details on the specific locations of the 444 stores slated for closure, a spokesperson for 7-Eleven stated that the decision was made to “optimize a number of non-core assets” that do not align with the company’s growth strategy. Despite the closures, 7-Eleven remains committed to expanding its presence, with plans to open over 270 new locations in 2024.

This news follows the company’s previous announcements in June about the closure of more than 270 stores and the shutdown of 184 locations throughout the previous year. If the current plan is executed, this will represent an increase of 88 closures in 2024 compared to 2023.

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While many customers express concern over the store closures, a small comfort remains in the company’s commitment to continue opening new stores in areas where consumer demand for convenience persists.

Slurpee: A Sweet Legacy at 7-Eleven

7-Eleven has long been synonymous with its iconic Slurpee, a frozen beverage originally created by Omar Knedlik. The Slurpee’s origins date back to a malfunctioning soda fountain that led Knedlik to freeze his sodas to keep them cold. This innovation delighted customers and ultimately led to the invention of a machine designed specifically for freezing carbonated drinks.

In 1965, 7-Eleven struck a licensing deal with Knedlik to sell the popular drink under the new name, Slurpee. By the spring of 1967, every 7-Eleven location had a Slurpee machine, and the store began introducing creative flavor names like Pink Fink, Moonshine, and Sticky Icky.

To celebrate its 75th anniversary in 2002, 7-Eleven introduced Free Slurpee Day, giving customers a complimentary taste of the iconic drink. Despite the challenges the retailer faces today, the Slurpee remains a beloved symbol of 7-Eleven’s long-standing legacy in the convenience store industry.