Seven & i Holdings, the parent company of c-store giant 7-Eleven, on Wednesday said it expects a “challenging” consumer environment ahead in North America while reporting that its full-year operating profits fell more than 21%.
The rocky financial report comes as the Tokyo-based company faces a potential takeover by Canadian rival Alimentation Couche-Tard, parent of the Circle K c-store chain.
Same-store sales at Irving, Texas-based 7-Eleven declined 2.7% during fiscal 2024, with the company forecasting a same-store sales decrease of 1.5% for fiscal 2025.
Seven & i reported a number of looming challenges ahead for its U.S. market, including rising cost of living, falling consumer confidence, declining cigarette sales and slowing consumer spending.
In North America, the company said it will continue to pursue growth strategies amid a “tough consumer spending environment, particularly among lower-and middle-income earners whose desire to save on food and other necessities has become even stronger,” according to its financial filing. “Also, there is growing polarization of consumption due to a decline in labor incomes, which is a result of challenging employment conditions, as well as inflationary pressures and high interest rates.”
For 2025, Seven & i said it will focus on four areas for its North American business: Growing proprietary products, boosting digital and delivery, improving efficiency and accelerating new store openings.
To that end, the company said it intends to launch more than 200 private-label items this year, on top of the 215 debuted last year, with plans to enter eight new categories.
7-Eleven also said it intends to grow its restaurant footprint by 24% from 2023, an increase from 910 in-store restaurants two years ago to a total of 1,130 by the end of the fiscal year. Locations with restaurants see significantly higher sales, traffic and margins than those without, the company said.
Particular emphasis will be placed on breakfast offerings and meal deals, with a focus on hot foods in 2025.
7-Eleven’s delivery service app, 7NOW, has seen 24% year-over-year same-store sales growth, with average basket sizes of $15.75. This year, the c-store chain will increase personalization and gamification on the app, it said.
The company opened 111 new 7-Eleven stores in 2024, with plans to open 125 this year, 190 in 2026 and 235 in fiscal 2027. New stores are larger and more focused on food than older versions.
7-Eleven is No. 1 on CSP’s 2025 Top 40 update to the2024 Top 202 ranking of U.S. c-store chains by store count. Alimentation Couche-Tard is No. 2. Watch for the full 2024 Top 202 ranking in the June issue of CSP magazine and in CSP Daily News.
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