Seven-Eleven parent to open 1,000 new stores in Japan to drive growth

The Mainichi

2 days ago

TOKYO (Kyodo) -- Seven & i Holdings Co. said Wednesday it plans to open around 1,000 new convenience stores in Japan and 1,300 in North America as part of a growth strategy through the year ending February 2031.
The Japanese retail giant, seeking an independent path after Canadian retailer Alimentation Couche-Tard Inc. withdrew its $47 billion buyout proposal in July, said it expects revenues from its convenience stores in fiscal 2030 to reach 11.3 trillion yen (76.5 billion), over 1 trillion yen more than fiscal 2024, by the expansion.
"It is extremely important that we undergo changes now," Stephen Hayes Dacus, who became the retailer's first foreign CEO in May, told a press conference. "We will change the way we run our business from the very beginning."
Seven & i operated around 21,600 Seven-Eleven stores in Japan and some 13,000 outlets in North America in fiscal 2024.
The expansion comes as its convenience unit Seven-Eleven Japan Co. saw an 11 percent drop in operating profit in the March-May period from a year earlier amid a saturated domestic market.
Seven & i is focusing on enhancing its value after the Canadian operator of Circle K convenience stores withdrew the purchase offer due to "a lack of constructive engagement," ending nearly a year of talks.
In a bid to fend off Couche-Tard's takeover attempt, Seven & i has outlined a series of restructuring plans, shedding its noncore operations and focusing on its 7-Eleven convenience store business.
Among reform steps, Seven & i agreed to sell its subsidiary operating the Ito-Yokado supermarket chain, which has recorded consistent losses in recent years, to U.S. private equity firm Bain Capital in September.
The subsidiary, York Holdings Co., operates 31 retailers, including the Denny's casual restaurant brand in Japan, the Loft outlet chain and children's clothing chain Akachan Honpo Co.
Seven & i has also said it will sell part of its shareholding in Seven Bank to deconsolidate the banking subsidiary.