Rio Linda, CA—In a move that has raised concerns in the Rio Linda / Elverta community, 7-Eleven has announced plans to close several hundred underperforming locations across North America.
The decision, announced by the company’s parent company Seven & I Holdings, comes in response to a variety of factors including slowing sales, declining traffic, inflationary pressures, and a decrease in cigarette purchases.
While a specific list of closing locations has not been released, the closures represent approximately 3% of 7-Eleven’s portfolio in the United States, Canada, and Mexico.
Almost exactly a year ago, the Rio Linda 7-Eleven store was the victim of looting after dozens of youths attacked the business during a sideshow at Elkhorn and Rio Linda Boulevard.
The company has attributed the closures to a “more prudent approach to consumption” among middle- and low-income earners in the face of persistent inflation, high interest rates, and a deteriorating job market. This has led to a 7.3% decline in store traffic in August, capping off six consecutive months of declines.
Additionally, the decline in cigarette purchases, once the largest sales category for convenience stores, has contributed to the closures. While there has been a shift towards other nicotine products like Zyn, it has not been enough to offset the loss.
According to CNN, Retail industry analyst Neil Saunders has described the closures as a “gentle pruning of the chain” to maintain its efficiency and profitability. He believes that the locations being closed have likely suffered from a disproportionate decline in foot traffic and customers due to rising food prices and reduced consumer spending. Increased competition from online and value stores may also have played a role.
Despite the closures, 7-Eleven has announced plans to continue investing in food in the United States, recognizing its growing importance as a sales category and customer draw. The company aims to improve its overall offerings and customer satisfaction, particularly in light of higher ratings for competitors like Wawa and Sheetz.
The announcement of the closures comes amid a takeover offer from Circle-K owner Couche-Tard, who has increased its bid to $47.2 billion.
