7-Eleven closes more than 400 stores due to low sales

7-Eleven will close at least 400 stores in North America due to underperformance. The company, which has 13,000 stores in the United States and Canada, reported the decision in an annual report.

According to the information, the chain has faced six consecutive months of decline in customers, including 7.3% in August.

"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. ... In this context, there was a more prudent approach to consumption, particularly among middle- and low-income earners," Seven & I Holdings said in a statement obtained by Fox Business.

Similarly, the company highlighted that cigarette sales, once the best-selling products for the company, have fallen 26% since 2019. Also, it indicated that a shift in sales to other nicotine products has failed to make much of a difference.

7-Eleven's decision coincides with the announcement by Lamb Weston Holdings, the nation's largest French fry producer that supplies chains such as McDonald's, that it will close its Washington plant and lay off at least 4% of its global workforce.

Lamb Weston Holdings, Inc. president and CEO Tom Werner highlighted that although sales were within company expectations, he does not believe there will be growth in fiscal year 2025.