(ReclaimingAmerica.net) – In a surprising move that underscores the economic challenges facing our nation on the watch of Kamala Harris and Joe Biden, the so-called Bidenomics, 7-Eleven is set to close 444 stores across North America.
This iconic brand is reacting to a series of economic pressures including rising inflation and evolving consumer preferences that are reshaping the retail landscape.
Such a decision speaks volumes about the necessity for businesses to adapt or perish in today’s volatile market.
7-Eleven’s announcement outlines plans to shutter 444 underperforming stores, roughly accounting for 3% of its U.S. and Canadian locations, NPR reports.
The decision to close these stores is largely attributed to declining cigarette sales, which have plummeted by 26% since 2019, and the growing trend among consumers towards healthier lifestyle options.
With inflation continuing to bite, traditional products like cigarettes are taking a hit, prompting strategic shifts by convenience stores.
The focus is now on introducing fresh foods and specialty beverages to meet rising consumer demands for affordable meals, a strategy that could counterbalance inflationary pressures.
By trimming its North American portfolio, 7-Eleven aims to concentrate its efforts on higher-demand regions.
Competitors like Wawa and Sheetz, known for higher customer satisfaction, serve as a benchmark for the changes 7-Eleven seeks to adopt.
“The North American economy remained robust overall thanks to the consumption of high-income earners, despite a persistently inflationary, elevated interest rate and deteriorating employment environment,” parent company Seven & I said in a release.
“There was a more prudent approach to consumption, particularly among middle- and low-income earners,” it added.
Another layer to this complex scenario is a potential acquisition by Canada’s Alimentation Couche-Tard, which might be eyeing 7-Eleven’s parent company, Seven & I Holdings.
This strategic move could significantly shift market dynamics if the acquisition goes through.
Meanwhile, 7-Eleven plans to capitalize on the culinary interests of American consumers by introducing popular international items like milk bread egg sandwiches and miso ramen to its menu, The Hill reports.
With a track record of operating over 21,000 stores in Japan, 7-Eleven is no stranger to handling market challenges.
The chain is affected by the pressure the North American economy has placed on middle- and low-income earners, who are pivotal in economic consumption. Such store closures underscore the deeper economic struggles affecting Americans today.
“Aligned with our long-term growth strategy, we continuously review and optimize our portfolio to deliver convenience where, when and how customers need it. As part of this, we made the decision to optimize a number of noncore assets that do not fit into our growth strategy. At the same time, we continue to open stores in areas where customers are looking for more convenience,” 7-Eleven told CBS MoneyWatch.
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