7-Eleven to close more than 440 stores after Circle K makes $47 billion acquisition offer

The main reasons are sluggish sales, falling customer numbers and persistent inflationary pressures.

The stores being closed represent about 3% of the 13,000 locations 7-Eleven operates in the United States and Canada.

Seven&I Holdings - the parent company of 7-Eleven - said it is facing cautious spending from customers, especially those with middle and low incomes.

7 eleven dong cua.jpg — A 7-Eleven store in China (Illustration photo). Photo source: Retail Asia

Cigarettes, once a staple of 7-Eleven stores, are also seeing sales decline, leading to a sharp drop in revenue. Cigarette sales at the chain have dropped 26% since 2019, and the shift to other nicotine products hasn’t been enough to make up for the shortfall.

7-Eleven’s partial store closures are also seen as a move to optimize its operations before restructuring. The company said it will continue to open new stores in areas with higher growth potential, in line with its long-term growth strategy.

The closure announcement comes as Circle K's parent company, Alimentation Couche-Tard, is trying to buy 7-Eleven. The Canadian company made an initial $38.7 billion offer, but was rejected.

On October 9, Alimentation Couche-Tard raised its offer to $47 billion, a major step toward boosting the deal’s chances of success. If successful, it would be the largest overseas acquisition by a Japanese company. However, negotiations between the two parties are being kept confidential at the request of the buyer.

In Vietnam, 7-Eleven entered the market in 2017 and currently has nearly 120 stores across the country.