7-Eleven is planning to shut down more than 400 stores in the United States that are not performing well, according to its parent company.

The 444 stores marked for closure are part of the approximately 13,000 locations owned by the convenience store chain across the U.S. and Canada. Although the company didn’t provide a list of specific locations, this announcement was made during their latest earnings call last week. The closures are anticipated to take effect in the last quarter of the year.

The company pointed to challenges in customer traffic and sales, citing that “shoppers are pulling back due to inflationary pressures.” Additionally, it mentioned a continuing decline in cigarette sales across the industry.

In response, the company has outlined several strategic initiatives, including a push to expand its own product line, which features fresh food and beverages, enhance digital services and delivery options, and further develop its loyalty program and store network.

Seven & i Holdings, the parent company of 7-Eleven, also announced plans to consolidate some of its non-essential subsidiaries into a newly formed holding company. Furthermore, it intends to rename itself ‘7-Eleven Corp’ to highlight its focus on its profitable convenience store operations.

The Japanese parent company of 7-Eleven is under pressure to demonstrate to investors that it can increase its value, especially after it rejected a preliminary acquisition offer in August from Alimentation Couche-Tard, which operates Circle K, on the grounds that it undervalued the company and its potential for growth.

The upcoming holding company, named York Holdings, will encompass 31 subsidiaries, including the group’s superstores, lifestyle merchandise store Loft, baby products retailer Akachan Honpo, and the local operating entity for Denny’s in Japan.