https://www.cbsnews.com/news/convenienc ... -closures/
Also last week a new site sale for 7-Eleven was posted to the NRC site:
https://www.nrc.com/2410/pages/sale_reg ... _agreement
This requires a login/confidentiality agreement to see the store list.
So based on what is publicly available regarding this NRC sale since it has a confidentiality agreement, I am not sure if this sale relates to the above CBS news article about 444 stores or not. The reason I say this is because these NRC sites are offered as "commission marketer opportunities" according to the public page where it asks for a login. So what happens with these types of arrangements based on my knowledge of when the big oil companies do this sort of thing is the big oil company (or in this case 7-Eleven) will still control the site lease or site ownership and control the fuel operation including branding/pricing but then the convenience store gets operated by a third party operator who pays rent to 7-Eleven and then receives some commission for the fuel sales. The Speedway "*Express*" situation in CA/OR/WA is an example of this type of marketing arrangement.
7-Eleven closing 444 US/Can/Mex Stores
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Re: 7-Eleven closing 444 US/Can/Mex Stores
Here's a little more context: https://www.fastcompany.com/91208318/7- ... lers-grows They're dealing with shareholder activisim and also spinning off some of their other assets (the parent company owns mish mash of things). It's unclear whether these are "new" closings or just an upward estimate of the closing program they initiated earlier this year which targeted 272 stores --I'm guessing no one has asked. They closed 184 stores last year.
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Re: 7-Eleven closing 444 US/Can/Mex Stores
If you dig around their financial reports on the parent site you'll see the 272 stores closing program was announced in one filing and this 444 stores closing program was announced in another filing. Both with impairments announced. So I think those are separate.buckguy wrote: ↑October 12th, 2024, 5:19 am Here's a little more context: https://www.fastcompany.com/91208318/7- ... lers-grows They're dealing with shareholder activisim and also spinning off some of their other assets (the parent company owns mish mash of things). It's unclear whether these are "new" closings or just an upward estimate of the closing program they initiated earlier this year which targeted 272 stores --I'm guessing no one has asked. They closed 184 stores last year.
With regards to the 272 stores, if you look at the NRC site I linked above you will actually see 7-Eleven has posted two active sales this year one for 76 stores to be sold outright and another for a (confidential) number of stores to transition to commissioned marketer locations. It is difficult to tell of these two sales are separate from or a part of the 272 stores.
The other thing in the reports is that 7-Eleven's US business is down 7% from a year ago and they cite it on issues with the US economic. Prices in these stores are up from a year ago too, so the real loss in traffic is a lot more than 7%. I think the convenience store sector is struggling and these poor operators like 7-Eleven US are in particular having major problems. They should probably divest Speedway to someone competent before the image of Speedway is completely ruined, but they may have already accomplished that with how they run things.
What they really need to do in the US is take the good stores- corporate operated stores, Speedway, and move those into a completely separate company from 7-Eleven US and put the Speedway management in charge of that. Zero "integration" with the 7-Eleven company period- no 7-Eleven US products, systems, "Big Gulp" cups, Slurpees, or anything. Run it how Speedway was run with stronger pricing and its own programs. Shift the old junk stores that are run by franchisees to the 7-Eleven and make that organization one that completely supports these franchise sites that are 50 years old in lousy neighborhoods but are profitable as convenience stores.
7-Eleven US is already demonstrating the weakness of its brand as they have more and more of their stations branded with gas from Exxon, P66, etc. As other convenience store chains have such strong brands that they put their own name on the gas pumps, 7-Eleven US takes the opposite approach and goes with these big oil companies for branding. Ironically these 7-Eleven US sites have such poor cleanliness and conditions I am shocked in particular Chevron even agrees to brand with them down in Texas.
I see no path forward for the 7-Eleven US network in its current form. They cannot compete against various better c-store operators in the US and that includes Circle K.
And if the Couche Tard acquistion actually happens they need to separate out the "good" parts of 7-Eleven US, and rebrand all of those to Circle K. Divest all the lousy parts and let the 7-Eleven/franchisee program continue as it has been going for decades now with those (and they definitely have some Circle Ks and Kangaroo Express units they can throw into that program as well). The 7-Eleven brand is trash in the US. It probably has a worse reputation than Motel 6.
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Re: 7-Eleven closing 444 US/Can/Mex Stores
Totally agree!storewanderer wrote: ↑October 12th, 2024, 10:33 amIf you dig around their financial reports on the parent site you'll see the 272 stores closing program was announced in one filing and this 444 stores closing program was announced in another filing. Both with impairments announced. So I think those are separate.buckguy wrote: ↑October 12th, 2024, 5:19 am Here's a little more context: https://www.fastcompany.com/91208318/7- ... lers-grows They're dealing with shareholder activisim and also spinning off some of their other assets (the parent company owns mish mash of things). It's unclear whether these are "new" closings or just an upward estimate of the closing program they initiated earlier this year which targeted 272 stores --I'm guessing no one has asked. They closed 184 stores last year.
With regards to the 272 stores, if you look at the NRC site I linked above you will actually see 7-Eleven has posted two active sales this year one for 76 stores to be sold outright and another for a (confidential) number of stores to transition to commissioned marketer locations. It is difficult to tell of these two sales are separate from or a part of the 272 stores.
The other thing in the reports is that 7-Eleven's US business is down 7% from a year ago and they cite it on issues with the US economic. Prices in these stores are up from a year ago too, so the real loss in traffic is a lot more than 7%. I think the convenience store sector is struggling and these poor operators like 7-Eleven US are in particular having major problems. They should probably divest Speedway to someone competent before the image of Speedway is completely ruined, but they may have already accomplished that with how they run things.
What they really need to do in the US is take the good stores- corporate operated stores, Speedway, and move those into a completely separate company from 7-Eleven US and put the Speedway management in charge of that. Zero "integration" with the 7-Eleven company period- no 7-Eleven US products, systems, "Big Gulp" cups, Slurpees, or anything. Run it how Speedway was run with stronger pricing and its own programs. Shift the old junk stores that are run by franchisees to the 7-Eleven and make that organization one that completely supports these franchise sites that are 50 years old in lousy neighborhoods but are profitable as convenience stores.
7-Eleven US is already demonstrating the weakness of its brand as they have more and more of their stations branded with gas from Exxon, P66, etc. As other convenience store chains have such strong brands that they put their own name on the gas pumps, 7-Eleven US takes the opposite approach and goes with these big oil companies for branding. Ironically these 7-Eleven US sites have such poor cleanliness and conditions I am shocked in particular Chevron even agrees to brand with them down in Texas.
I see no path forward for the 7-Eleven US network in its current form. They cannot compete against various better c-store operators in the US and that includes Circle K.
And if the Couche Tard acquistion actually happens they need to separate out the "good" parts of 7-Eleven US, and rebrand all of those to Circle K. Divest all the lousy parts and let the 7-Eleven/franchisee program continue as it has been going for decades now with those (and they definitely have some Circle Ks and Kangaroo Express units they can throw into that program as well). The 7-Eleven brand is trash in the US. It probably has a worse reputation than Motel 6.
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Re: 7-Eleven closing 444 US/Can/Mex Stores
There are some Circle K stores notoriously close to 7-Eleven stores. They are building a brand new Circle K and 76 Combination near my house just feet away from the old rundown 7-Eleven.
Literally the new Circle K blocks the 7-Eleven from being visible from the street. It is ridiculously close. Many 7-Eleven stores that are in such close proximity should be closed.
I am eagerly awaiting the new Circle K as the new Circle K stores in this area are very fancy inside.
Literally the new Circle K blocks the 7-Eleven from being visible from the street. It is ridiculously close. Many 7-Eleven stores that are in such close proximity should be closed.
I am eagerly awaiting the new Circle K as the new Circle K stores in this area are very fancy inside.
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Re: 7-Eleven closing 444 US/Can/Mex Stores
I wonder how many (if any) of the gazillion 7-11 stores near my house will close. Within a 2 mile radius, I have a whopping 8 or more stores. Most are older locations. 2 are new builds in the last few years, one is a former Speedway.
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Re: 7-Eleven closing 444 US/Can/Mex Stores
You can check that NRC.com website and the two sales on the list there for some clues... just have to sign a non disclosure agreement. I don't think those NRC.com 7-Eleven site sales are part of the 444 stores but am not 100% sure of that.