7-Eleven plans to shutter 444 stores across North America as the company falls behind on previous earnings forecasts, and the shedding of real estate assets is unlikely to end there.
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Japanese parent company Seven & i Holdings also plans to offload an undisclosed number of North America properties via sale-leaseback, according to a quarterly earnings presentation Thursday. That deal is expected to close in February 2025, generating a $520M profit for Seven & i, C-Store Dive reported.
Struggling Seven & i lowered its expectation for its fiscal 2024 net income to 163B yen (about $1.1B), down 44% from a prior projection of 293B yen ($1.97B).
The company attributed the drop to “a tough consumer spending environment, particularly among lower-and middle-income earners” in its most recent financial report.
7-Eleven's parent pointed to “a decline in labor incomes, which is a result of challenging employment conditions as well as inflationary pressures and high interest rates” for its North American woes.
In a statement to C-Store Dive, a 7-Eleven spokesperson said its decision would optimize a number of noncore assets that no longer fit its growth strategy, though the company plans to continue opening stores in other areas.
The company also plans to increase its offering of proprietary products, accelerate digital and delivery initiatives and “generate synergies” from SEI and Speedway — gas station chains it previously spent billions of dollars on to grow its footprint.
Despite setbacks this year, Canada-based Alimentation Couche-Tard has been making moves to acquire Seven & i, hoping to create a 100,000-store-strong retail behemoth.
In September, Seven & i rejected a $38B takeover bid, claiming that it grossly undervalued the company. Earlier this week, Couche-Tard circled back, bumping its offer by approximately 20% to $47.2B, Bloomberg reported.
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