7-Eleven is planning to close hundreds of stores in North America as it doubles down on its goal of selling more food and drinks and delays the planned initial public offering of its North American division.
The world's largest convenience store chain will close 645 stores in the United States, Canada and Mexico during the 12 months that began March 1, according to a financial report issued by Seven & i Holdings, the Japan-based parent company of 7-Eleven. The company did not identify the stores set to close.
Convenience stores derive most of their revenue and profit from food, beverages, cigarettes, vapes and other items, rather than gasoline sales. That has led to ongoing kitchen expansions at many convenience stores, especially to make custom-ordered food and drinks with higher profit margins.
The strategy, however, requires significant capital expenditures. Convenience retailers must expand the square footage of their existing stores to accommodate bigger kitchen areas. They need to install larger kitchen appliances with more cooking features to handle orders submitted through a video kiosk. And they need to invest in off-site distribution centers and trucks to supply ingredients for the expanded food and beverage sales.
Included in the group of 645 North American stores slated to close are locations where gasoline pumps will be retained, but the indoor retail portion will be closed. In addition, Seven & i Holdings expects to open 205 new 7-Eleven stores in North America during its current fiscal year, which began March 1.
The Irving, Texas-based corporate division for 7-Eleven did not respond to CoStar News' emailed requests for comment.
News of the closings comes as Seven & i looks to delay an IPO of its North American convenience store division, 7-Eleven Inc., until the second half of 2026 at the earliest, according to the Japanese financial news site Nikkei Asia. The company cited market conditions for the postponement.
Seven & i will retain a majority stake in the North American convenience store subsidiary after the IPO, according to a March 2025 statement.