November 1st 2024.
7-Eleven, a popular convenience store chain, has announced plans to open over 600 new stores by the end of 2027. However, at the same time, the company is also closing down 444 underperforming locations across North America. The decision to close these stores was made by the company's Japan-based parent company, Seven & I Holdings, due to inflation and a decline in cigarette sales.
The 444 locations being closed represent only 3% of 7-Eleven's over 13,000 stores in the US, Canada, and Mexico. The company stated that it is constantly reviewing and optimizing its portfolio to better serve its customers and is also opening new stores in areas where there is a demand for convenience.
In fact, last week, Seven & I Holdings announced its plan to open hundreds of new stores, which will increase the company's net store count even further. According to 7-Eleven's CEO Joe DePinto, the company aims to open 600 new large-format, fast-casual food stores in North America by the end of 2027. These new stores, called the "New Standard" stores, will offer a variety of food options and will also have self-checkout counters.
Some of these "New Standard" stores, also known as "Evolution" stores, have already been opened and have shown a promising 11% return on investment. These new stores will also feature in-store restaurants, wine cellars, and premium offerings such as cigars. The first "Evolution" store was opened in Dallas in 2019, but it is uncertain how many are currently operating.
In an investor call, DePinto stated, "In our Evolution stores, the feedback we received from our customers was clear. So, we built these stores with our customers in mind." The company plans to have 115 of these new stores open by the end of 2025, 175 in 2026, and 200 in 2027. DePinto also mentioned that they are expecting a 30% increase in sales at these new stores, with an average of $8,219 per store per day after four years.
The exact locations of the 444 stores being closed have not been disclosed yet. However, there have been reports of some closures in Las Vegas, a city with the highest number of 7-Eleven stores in the US. Despite the store closures, 7-Eleven remains committed to providing its customers with convenient options and is constantly evolving to meet their demands.
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