### 7-Eleven to Close 444 Stores Amid Economic Pressures and Shifting Consumer Trends

7-Eleven has announced the closure of hundreds of its stores across North America, a decision driven by multiple economic and consumer-related factors. The convenience store chain will shutter 444 locations that are deemed "underperforming," according to a recent earnings call from its Tokyo-based parent company, Seven & I Holdings.

CEO Joe DePinto highlighted several reasons behind the closures, including inflation pressures, reduced foot traffic, declining cigarette sales, and evolving consumer preferences. These closures represent about 3% of the chain’s total operations, which include over 13,000 stores in the U.S. and Canada.

The company reported a 7.3% drop in customer traffic in August, marking the continuation of a downward trend over several months. The economic environment has prompted low-income consumers to adopt a more cautious spending approach, influenced by factors like rising inflation, high interest rates, and what the company termed a "deteriorating" job market.

One of the significant declines pointed out was a 26% drop in cigarette sales since 2019, hitting an 80-year low. Consumers are increasingly turning to alternative nicotine products such as Zyn.

In response to these challenges, 7-Eleven plans to revamp its offerings by focusing more on fresh foods and specialty beverages, aiming to provide affordable meal options. "Affordable, high-quality foods are becoming more important," DePinto noted during the earnings call.

Rival chains known for their loyal customer base and strong food offerings, like Wawa and Sheetz on the East Coast, have managed to score higher in customer satisfaction surveys conducted by the American Customer Satisfaction Index. In contrast, 7-Eleven has fallen below the industry average in these rankings.

Despite the closures, 7-Eleven maintains that it will continue to invest in high-demand areas. "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 company stated. New store openings are planned for regions where there is a higher demand for convenient shopping options.

Adding another layer of intrigue to the developments, Canadian company Alimentation Couche-Tard, owner of the Circle-K chain, has expressed interest in acquiring Seven & I Holdings. Should this takeover proceed, Couche-Tard would become the largest convenience store operator globally.