7-Eleven reports rising profits amid shifting consumer spending

7-Eleven is experiencing a disconnect between strong financial performance and changing consumer behavior. In North America, the company reported $28.8 billion in revenue for the six months ending August 31, a 9.8% increase, with operating income jumping 45.8% to $1.32 billion. However, this growth was largely driven by favorable fuel-market conditions rather than merchandise sales. U.S. same-store merchandise sales rose only 0.6%, and growth slowed significantly from the first quarter to a 0.1% decline in the second quarter, accompanied by falling store traffic.

Management noted that declining disposable income is impacting consumer sentiment, leading shoppers to be more cautious with discretionary purchases like snacks and drinks.

In contrast, Uni-President convenience store operations reported record high revenue and earnings for the first three quarters, driven by 7-Eleven branches in Taiwan and the Philippines, as well as investments in Starbucks and Cosmed. To combat competition, the company is expanding physical footprints, introducing fresh food options, and leveraging its OPENPOINT membership program, which has surpassed 20 million members.