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Tag: Seven @ I

  • Japan’s Seven & i review to continue under investor pressure

    Japan’s Seven & i review to continue under investor pressure

    Seven & i’s independent directors said on Thursday the Japanese retail giant’s board would continue to review strategic alternatives as it faces pressure for broader reforms from some shareholders, including activist ValueAct Capital.

    ValueAct, which owns a 4.4 percent stake in Seven & i and has been pushing for change since 2020, calls for a spin-off of its 7-Eleven convenience store chain and seeks to replace four of the 14 board members at an upcoming annual meeting.

    A source has said Seven & i president Ryuichi Isaka is one of the board members ValueAct wants to replace.

    “The board is currently discussing the shareholder proposals and new board composition, and we plan to announce our decisions in mid-April,” Isaka told reporters and analysts on Thursday.

    Last month, Seven & i announced the results of a strategic review and said it would close an additional 14 Ito-Yokado supermarket stores in Japan and fully exit its apparel business. Some investors, though, said the review did not go far enough.

    The company said on Thursday it would reshuffle its financial services.

    Seven & i said in a separate statement that its operating profit rose 30.7 percent to a record 506.5 billion yen ($3.85 billion) in the financial year to end February. For the financial year that began on March 1, it forecasted a 1.3 percent profit increase.

  • Seven & I confirms on-again, off-again Speedway deal

    Seven & I confirms on-again, off-again Speedway deal

    Japanese 7-Eleven convenience store chain owner Seven & I will purchase Marathon Petroleum’s American Speedway petrol stations in a US$21 billion deal that has been significantly delayed by the advent of the coronavirus pandemic.

    The firm was reported to be in talks to purchase the brand’s convenience-store network in the US last February, in a move then expected to be the largest overseas acquisition by a Japanese firm in the US so far this year. The purchase was dropped in March because the expected asking price was considered too pricey by the group’s board of directors.

    Now that the deal has been picked up, Seven & I has the opportunity to look beyond its own market and greatly extend the number of outlets it already operates in the territory, bringing its estimated total North American stores to around 14,000. The deal also comes with a 15-year fuel supply agreement with Speedway.

    7-Eleven is facing stiff competition from competitors at home in a saturated market both in terms of physical operators and online retailers.

    For Marathon, proceeds from the sale are likely to go towards reducing the company’s significant debt.

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  • Seven-Eleven becomes first retailer to hit 20,000 stores in Japan

    Seven-Eleven becomes first retailer to hit 20,000 stores in Japan

    7-Eleven Japan has become the country’s first retailer to open more than 20,000 stores.

    The Seven & I Holdings unit reported a store count of 20,033 at the end of last month, up by 54 from the end of December. By comparison, Japan has about 24,000 post offices.

    Making its debut in Tokyo’s Toyosu district in May 1974, 7-Eleven grew to 10,000 stores by August 2003. It reached 15,000 outlets in February 2013.

    The convenience stores can be found in all but one of Japan’s 47 prefectures, the holdout being Okinawa, where locations will open next year.

    Revenue for the chain for the year ended February last year totalled ¥4.51 trillion (US$41 billion), nearly double the sales in the year ended February 2004, when it crossed the 10,000-store mark. Average daily sales per store reached ¥657,000 last fiscal year, a 2 per cent gain.

    An increase in female customers has become an important driver of sales. Males made up 65 per cent of visitors during the year ended February 2004, but now men and women visit in roughly equal numbers.

    More women have been attracted as 7-Eleven has expanded its offerings of ready-made packaged dishes and frozen foods, positioning itself as an alternative to supermarkets.

    A Nikkei survey shows 7-Eleven Japan leading the convenience-store sector with a 40.4 per cent share of sales in fiscal 2016, followed by Lawson and FamilyMart Uny Holdings. Together, the trio accounts for about 90 per cent of the market.

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  • Hello Cycling now can be found in 7-eleven

    Hello Cycling now can be found in 7-eleven

    Bicycle hubs are being rolled out at 7-Eleven Japan outlets in a partnership with the Hello Cycling bike-sharing business.

    The convenience store parent Seven & I Holdings has partnered with Hello Cycling, launched last year by tech company SoftBank Group and its subsidiary OpenStreet. Customers can rent and return bikes at the special 7-Eleven parking lots.

    So far the service is available at nine 7-Eleven locations in Saitama, north of Tokyo, with plans to have 5000 bicycles available at 1000 stores in the Tokyo metropolitan area and other cities by the end next year. There are about 20,000 7-Eleven stores throughout Japan.

    Hello Cycling members can search for bike-share stations and reserve bicycles via smartphone. If they register a transportation smart card, they can pick up bikes on the spot without a reservation. Payment can be made by credit card without entering the store, and bikes can be returned at any participating location.

    In February, 7-Eleven partnered with the Docomo Bike Share service, run by wireless carrier NTT Docomo, making about 150 bicycles available at 32 stores in Tokyo and elsewhere. The partnership will continue alongside the SoftBank service, which follows the Japanese debut of China’s Beijing Mobike Technology in August, with rival Ofo preparing to follow suit.

    Mercari, a Tokyo-based flea-market app company, also plans to break into bike-sharing early next year.

  • Seven & I plans to triple China network

    Seven & I plans to triple China network

    While Japanese retailer Seven & I, which owns the 7-Eleven brand, has seen sales sliding, it plans to triple its network of supermarkets and department stores in China.

    The company aims to capitalise on the high growth in Sichuan province to grow its general merchandise store network there to 20 outlets by 2020.

    Its local subsidiary will increase its Ito Yokado-branded stores to 10 in the region, while one Ito Yokado supermarket will open in southern Chengdu next year with plans to launch as many as 10 locations in the city by 2020, says Ito Yokado head of Chinese operations Tomohiro Saegusa.

    Ito Yokado will also set up a company to sell Japanese products online, aiming for sales of ¥10 billion (US$85.7 million) by 2020. The company may use the free trade zone planned by Sichuan province.

    Meanwhile, group total sales continued to slide for a second consecutive quarter for Seven & I, which owns the 7-Eleven brand. Its third-quarter sales fell by 1.4 per cent to ¥7909 billion. However, its operating profit improved by 5 per cent for the quarter ended November 30.

    With more than 19,000 stores, 7-Eleven Japan has achieved continued growth. Total sales grew by 5.5 per cent to ¥3422 billion and operating profit reached ¥187.1 billion for its latest nine months, up 4 per cent year-on-year.

    Seven & I says 7-Eleven’s product strategy has largely driven its success. The retailer captured expanding demand for ready-made take-home meals, spurred by a rise in dual-income and elderly households. Private-label products rake in more than ¥10 billion in sales a year, showing the benefits of scale.

  • FamilyMart-Uny seal merger

    FamilyMart-Uny seal merger

    A merger of Japan’s third and fourth-ranked convenience store operators is set to create a “third force” in Japanese retailing behind Seven & I and Aeon.

    The FamilyMart-Uny merger terms have now been agreed and the two companies are now working towards an implementation date of September 2016.

    FamilyMart will soak up smaller Uny, which operates the Circle K Sunkus convenience store network in Japan. A new holding company will be created, 30 per cent owned by Japanese trading house Itochu, which currently owns three per cent of Uny and is FamilyMart’s single largest shareholder.

    Once merged, the new business will turn over around US$42.2 billion from some 18,000 stores, a network larger than current second placed Lawson and on a par with Seven Eleven Japan.

    The merger has already taken some eight years to negotiate making it nine years by the time the merged entity begins trading. It was back in 2007 when FamilyMart first approached Uny, an offer initially rebuffed.

    Some details have yet to be finalised – or announced – such as the future of Uny’s 230 or so general merchandise stores in what will essentially become a convenience store operator.

    Uny president Norio Sako says there will be some store closures, decided “on their individual merits”.

    There is also no final agreement yet on whether a single operating brand will be adopted.

  • Seven & I to launch online store

    Seven & I to launch online store

    Japan’s Seven & I Holdings says it will open a giant online store in November, offering products sourced from across its retail store brands.

    By February 2019, Seven & I anticipates a range of 6 million SKUs will be available on the new store, including goods specifically created for the channel in partnership with name brands, including apparel chain Uniqlo.

    It targets ¥1 trillion in annual turnover, or US$8.3 billion when fully operational.

    Seven & I is the global parent of the 7-Eleven convenience store brand, owns the Ito-Yokado chain of hybrid supermarkets and general merchandise stores and the high end department stores Seibu and Sogo.

    The new online store ‘Omni7’ will open on November 11 with a stock of 1.8 million items.

    Shoppers will be able to request delivery to their home or two any Seven & I outlets for convenient collection – such as 7-Elevens.

    Returns will be permitted over the counter at any group store.

  • Fast Retailing, Seven & I mull partnership

    Fast Retailing, Seven & I mull partnership

    Two of Japan’s largest retail businesses are eyeing a “comprehensive business alliance” according to Japanese news reports.

    A strategic relationship currently under discussion could see a range of mutually beneficial co-operations spanning physical stores and eCommerce.

    Details are still sketchy, but according to news reports, Fast Retailing, the parent of Uniqlo, could work with Seven & I, parent of 7-Eleven convenience stores and the Ito-Yokado supermarket chain, on areas including product design, house brands, marketing and distribution.

    Uniqlo may use 7-Eleven stores as collection points for online purchases.

    The two companies may also launch a joint venture clothing brand outside the Uniqlo network.

    To date, that’s as much information as has leaked out.

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  • Migros to sell private label in Japan

    Migros to sell private label in Japan

    Swiss retailer Migros is to sell private label products into two Japanese retail chains.

    Switzerland’s largest grocer, and one of the world’s 40 largest supermarket chains, is to sell lines to Lawson’s Seijo Ishii stores and Seiyu, which is Walmart’s Japan business.

    According to the Nikkei Asian Review, Migros will start with 16 premium products including Swiss Delice biscuits and iced tea, which will go on sale in 400 supermarkets trading under the Seiyu and Seijo Ishii banners.

    By 2020, Migros hopes to expand the range to 300 items, including desserts, snacks, cosmetics and skincare products, projecting sales of US$16 million annually.

    Retail research house IGD describes the move as “particularly surprising” for Seiyu, whose range already includes private label lines from Walmart’s own network, including Asda’s Extra Special wines.

    IGD describes Japan as “the most sophisticated private label market in Asia,” with strong players including Seven & I, Aeon, FamilyMart and Lawson.

    “These retailers are exploring the higher margin opportunities that premium private label ranges offer, focusing development around high quality, special ingredients and unique products.”

    Those ranges include Seven Gold and FamilyMart’s Platinum Line.

    But IGD says European influenced products are likely to appeal to shoppers’ increasingly cosmopolitan tastes, and the early line-up includes items which are mutually popular in the Swiss and Japanese markets: ice cream and iced tea.

    “Migros follows in the footsteps of European retailers Waitrose and Carrefour, whose private label products are already available in Japan through partnerships with Aeon.”

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  • Seven & I in grocery pact

    Seven & I in grocery pact

    Japanese retail giant Seven & I Holdings is to partner with an Osaka supermarket chain in product development and supply chain initiatives.

    Its new partner, Mandai Co, has about 150 stores in Osaka and four other prefectures in Kansai and achieved ¥279.3 billion (US$2.2 billion) in sales in the year to February.

    While the initial partnership is a working relationship, the Japan Times reports Seven & I, which owns the 7-Eleven convenience store network and Ito-Yokado supermarket chain, may take an equity stake in Mandai.

    Commentators say the partnership will give Seven & I local product and sourcing knowledge, improving its Ito-Yokado offer in Kansai region. Especially beneficial will be food product development and know-how.

    Seven & I, will dominant in Japan’s retail industry, wants to improve the localisation of its offer, reflecting regional characteristics in its food range in particular.

    For Mandai, the partnership could have benefits in its buying power with suppliers and reduce product development costs.