Seven & i Holdings to Accelerate Growth in North American C-store Channel
TOKYO — Seven & i Holdings plans to focus on using mergers and acquisitions in North America to strengthen its convenience store business, the company announced April 10.
The parent company of 7-Eleven Inc. stated that it will proactively implement strategic investments in its convenience store business with a more agile and flexible discipline. It also plans to accelerate growth in the North American c-store market while improving profitability and capital efficiency.
The company will also pursue an initial public offering (IPO) of its supermarket business, including Ito-Yokado in Japan, according to a Nikkei Asia report.
[Read more: Seven & i Holdings Reaffirms Commitment to Convenience]
Seven & i's strategic shift comes nearly a year after longtime activist investor ValueAct Capital made a bid to replace several directors on the company's board with its own slate of nominees. While the slate was voted down in May 2023, ValueAct — which has advocated for a spinoff of 7-Eleven — stated that the number of votes that went to its nominees signaled a desire for change within the company.
Based on recommendations of its strategy committee, Seven & i also plans to create a globally integrated convenience store management structure, including Japan and North America, with a unified leadership.
[Read more: 7-Eleven International Closes $1.1B Deal for 7-Eleven Australia]
"We will continue to engage and actively listen to the voice of all the stakeholders including our shareholders and will also commit to the continuous growth of the group and increase of our corporate value through realizing 'a world-class retail group centered around its food that leads retail innovation through global growth strategies centered on the 7-Eleven business and proactive utilization of technology,' by implementing the recommendations of the [strategy committee] as approved by the board and clearly reflecting these within the progress of our next medium-term management plan," wrote President and CEO Ryuichi Isaka.
The executive noted that the company seeks to continuously examine and strengthen investor communication regarding its concrete strategy, growth path and progress.
Seven & i Holdings is the parent company to Irving, Texas-based 7-Eleven Inc., which operates, franchises and/or licenses more than 15,000 stores in the United States, Canada and Mexico. In addition to 7-Eleven stores, the company operates and franchises Speedway, Stripes, Laredo Taco Co., and Raise the Roost Chicken and Biscuits locations.
Seven-Eleven Japan Co. Ltd. operates and franchises more than 21,000 stores in Japan.