Nikkei Asia reported that Seven & i Holdings will focus on strengthening its convenience store business through mergers and acquisitions in North America while also pursuing an initial public offering of its struggling supermarket business.
Reuters reported: “Under pressure from activist investors, Seven & i has been selling off underperforming retail assets and doubling down on its global convenience store business centered around its flagship 7-Eleven brand.”
Seven & I Holdings announced that “we will create a globally integrated [convenience store] management structure, including Japan and North America, with a unified leadership.”
The moves will allow the company to develop “more aggressive” investment plans for the global convenience store business.
According to Nikkei Asia: “The action plan reflected the committee’s recommendations, including improving profitability of the convenience store business in North America.
The company expects the region to be a ‘key driver’ for growth and is considering accelerating the pace of acquisitions.”
The action plan itself states:
In order to promote the growth strategy of our Group, we will proactively implement strategic investments in the Convenience Store (“CVS”) business with a more agile and flexible financial discipline (target leverage: Net Debt/EBITDA ratio 1.8-2.5x) while at the same time working to improve the Group’s capital efficiency.
Bullets in the action plan include:
- Accelerate growth and improve profitability and capital efficiency in the North American CVS market with large growth potential
Develop more aggressive business plans and investments for the Global CVS business
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