7-Eleven to close 645 US locations in company restructuring overhaul

The move includes those locations that will be turned to wholesale fuel locations as well as others that will be closed outright, per Mass Market Retailers. The company is recalibrating ahead of a planned IPO (initial public offering) in North America. The move from the store chain comes as there have been a string of years where 7-Eleven has closed more locations than have been opened up.

As the news of the closures is taking place, 200 other locations will be opening up with a larger focus on expanded food and service on the convenience store side. Tobacco and fuel are the core products for the industry, but growth is going to be more so tied to food, beverages, and the in-store experience.

“Fuel can still attract customers, but it no longer drives growth on its own,” an analysis of the industry said. Competition is shifting to be inside the store instead of bringing people to the pump. Wawa as well as Sheetz have both capitalized on the shift, with both having more destination-oriented locations and expanded food options.

The company is also repositioning and converting some locations into wholesale fuel services. The move will reduce operating costs and will be able to continue to generate fuel revenue. Growth going forward will no longer just be tied to location, but to the quality of the store, service options, and other factors.

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