The company said its customers are feeling economic stress
of ConsumerAffairs
In another sign that lower income consumers are struggling, 7-Eleven has announced it will close 444 stores in North America, primarily in the United States.
On its latest earnings call, the company said the stores targeted for closing are underperforming. It said inflation, falling foot traffic and a shift in consumer preferences are all contributing factors.
Dollar stores are also feeling this kind of pressure. Recently, Big Lots filed for bankruptcy and announced it would close some stores.
7-Eleven currently operates more than 13,000 stores in the U.S. and Canada but reported softer sales in August and a more than 7% decline in traffic. The company said low income customers are taking what it termed a more prudent approach to consumption. It attributed the change to inflation, but also economic trends that are presenting challenges to its customer base.
It also admits that part of its problem is because consumers are making healthier choices. The company reports cigarette sales are down 29% since 2019.
Affordable high-quality foods
Affordable, high-quality foods are becoming more important, Joe DePinto, the CEO and president of 7-Eleven, said in the earnings call.
Because of that, 7-Eleven said it would begin stocking more fresh food and specialty beverages to meet shifting consumer demand. Its following the lead of East Coast competitors Sheetz and Wawa, both of which have kitchens offering healthy food choices.
"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 said in a statement to the media. At the same time, we continue to open stores in areas where customers are looking for more convenience."
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-10-14 00:06:30
