Like its iconic retro sign, 7-Eleven is known for hot dogs on roller grills and Slurpees — especially when they're free on July 11 every year. But just last week, the convenience store's parent company, Seven & i Holdings, announced it was closing hundreds of 7-Eleven locations. According to an Oct. 10 quarterly presentation, 444 “underperforming stores” in North America are expected to close by the end of the year.

What could this mean for the convenience store giant?

In addition to 7-Eleven, several long-standing chains were also affected by the recent closures. Red Lobster closed hundreds of restaurants and filed for bankruptcy before being purchased by an investment company. While the legendary Endless Shrimp deal was only part of the lost sales, it doesn't appear that free Slurpees had anything to do with 7-Eleven's closure.

According to the presentation, factors impacting sales include growth in shipments and the fact that 62% of consumers live paycheck to paycheck. Another reason is declining tobacco consumption. The report cites a 26% decline in cigarette consumption since 2019.

But closing 444 of 13,000 stores in North America is just one of the measures outlined in the company's plan for “long-term success” in North America. It also lists growing proprietary products, accelerating digitalization and delivery, expanding branch network, and improving efficiency and cost leadership.

“In line with our long-term growth strategy, we continually review and optimize our portfolio to deliver convenience where, when and how customers need it,” 7-Eleven told Delish when reached for comment.

The company said it would eliminate stores that “do not fit our growth strategy,” adding that “we continue to open stores in areas where customers want more convenience.”

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