7-Eleven has had quite the year so far, marked by significant moves including acquisitions, major challenges due to economic pressures, and ambitious expansion plans. The Irving, Texas-based convenience store chain kicked off 2024 with the announcement of acquiring 204 Stripes convenience stores across Texas, New Mexico, and Oklahoma from Sunoco for around $1 billion, marking its largest acquisition since obtaining Speedway stores back in 2021.
According to 7-Eleven’s President Stan Reynolds, this acquisition is anticipated to add about $110 million in store-level forward EBITDA within five years and $90 million in operating income. He noted the company planned to leverage its proprietary fresh food brands to improve the product offerings at these newly acquired locations.
Nonetheless, as it expanded its network, 7-Eleven grappled with various economic challenges. CEO Joseph DePinto voiced concerns during the parent company Seven & i’s earnings call, predicting tight economic conditions owing to inflation. “I expect inflation to continue tightening consumers’ pockets,” he stated, emphasizing the need for adaptations within the company.
7-Eleven wasn’t just sitting back—this summer, they embarked on battling inflation head-on by introducing new discount food items and beverages under its 7-Select private label brand. The company launched several products, including chicken nuggets and breakfast pizza, adding promotional items like $1 pizza slices during their Slurpee Day birthday celebration—this time open to all customers instead of just loyalty members.
7-Eleven’s year took another twist when Alimentation Couche-Tard, the parent company of Circle K convenience stores, submitted a takeover offer for Seven & i valued at $39 billion back in August. While this initial proposal was swiftly declined, Couche-Tard countered with a revised offer, reaching as high as $47 billion by October. This move prompted Seven & i’s board of directors to establish a special committee to evaluate the bids, which could significantly affect 7-Eleven’s future operations.
Around the same time, DePinto announced plans to close 444 underperforming convenience stores across North America, citing decreased sales and inflation-weary consumers. “The impact of the economic challenges we discussed reached a climax due to underperformance,” DePinto explained, noting the decision to also sell $750 million worth of company property through sale-leaseback arrangements.
Shifting to future directions, 7-Eleven shared plans to open over 600 new large-format stores in North America by 2027. These upcoming stores will showcase the company’s New Standard prototype—featuring expanded food and beverage options, electric vehicle charging stations, and additional seating areas to attract more customers. The New Standard locations have reportedly been performing well, with 7-Eleven seeing 11% returns on invested capital.
7-Eleven aims to solidify its place at the forefront of the convenience retail market through strategic acquisitions and innovative store concepts, even amid economic turbulence. With changes implemented as part of its vision for growth, the company is adjusting operations to weather financial headwinds and meet consumer demands.
Despite facing setbacks, DePinto remains optimistic about the brand's adaptability and future. “Our new stores are food and beverage forward, and our customers appreciate them,” he said, reflecting on the brand’s direction as it navigates these uncharted waters.
