7-Eleven weighs closures

Monday, Feb. 11, 2002 | 10:32 a.m.

SUN STAFF AND WIRE REPORTS

DALLAS -- 7-Eleven Inc. announced plans to close 115 to 120 convenience stores and reported its fourth-quarter earnings narrowly beat Wall Street expectations.

Company officials declined to comment on specific store closures in Southern Nevada.

7-Eleven has 157 stores in Clark County, each of which employ about 10 workers, said Margaret Chabris, a spokeswoman for the company.

"This is business as usual, but accelerated," said Chabris of the closings. "We typically close 40 to 60 stores each year for a variety of reasons -- either they're underperforming, or a store's lease runs out, or a neighborhood's demographics change."

Chabris said 7-Eleven would close twice as many stores as normal in 2002 so it could reallocate revenues to the company's Fresh Foods Initiative, as well as to technology and training.

She said the planned store closures would happen by the end of the first quarter.

The company earned $17.1 million, or 16 cents per share, in the fourth quarter ended Dec. 31 compared to $14.2 million, or 14 cents per share, a year ago.

Excluding a charge for store closings and a $5.7 million accounting-change gain, the company said core earnings were 14 cents per share.