California Faces Closures as Huge Retailer Plans to Cut 444 Locations; Blames Inflation for Declining Sales

California Faces Closures as Huge Retailer Plans to Cut 444 Locations; Blames Inflation for Declining Sales

If you were to take a guess at the biggest retailer in the world, Walmart or Target might come to mind. Yet, those would not be the correct responses.

7-Eleven stands out as the biggest retailer globally, boasting more than 84,000 locations across 19 countries.

A recent report indicates that at least 444 stores will be closing globally, including locations in the United States, Mexico, and Canada.

Although that figure appears modest, it accounts for 5% of all locations worldwide, and in the grand scheme of things, it remains a relatively small number.

States such as California, Utah, and Nevada are potentially facing significant challenges with retail spaces, as these areas have the highest concentration of locations in the United States.

California features over 1,900 distinct locations, accounting for more than 20% of the nation’s total. Sales are down and inflation is rising, leading to the reduction of 7-Eleven retail locations.

Sales of cigarettes were once the leading item in convenience store purchases, but Seven & I Holdings, the parent company of 7-Eleven, has reported a 26% decline in this category since 2019.

Ultimately, every company experiences phases of change, and this action is taken to secure future profitability. It is yet to be determined where the majority of reductions will take place.

Reference

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