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7 & i CEO says brand-new business structure will permit growth

7 & & i Holdings' strategy to hive off underperforming services will enable it to expand its core 7Eleven convenience stores, its chief executive said on Thursday, as the Japanese seller seeks to prevent a $47. billion Canadian takeover.

Seven & & i, which is holding an investor day instruction with. experts and investors, is battling to remain independent after. Canada's Alimentation Couche-Tard used to buy it.

It has said it is positive it can unlock investor. value itself. Under the restructuring announced this month, it. goals to split off the supermarket operation and some 30 other. non-core units into a holding business. Market reception up until now. has actually been underwhelming, with shares moving little bit given that the strategy. was first detailed.

While its Japanese 7-Eleven convenience stores are a. money-spinner, Seven & & i has been hobbled by poor performance at. its grocery stores, including the Ito Yokado shops that comprise a. part of the holding company it formed years earlier. Some foreign. investors have long required a split of business.

By altering its structure, the group will have discipline. to pursue growth, Chief Executive Ryuichi Isaka told the. rundown.

This will produce investor and corporate value. We will. move expeditiously.

But abroad 7-Eleven shops are less lucrative. In Japan,. the operating margin is 27%, far above the 3.5% of 7-Eleven. shops elsewhere.

The U.S. company has been injured by a weak macro environment. that weighed on customer appetite, The United States and Canada chief Joseph. DePinto stated.

The group was focusing on fresh food to increase sales, he. stated. Fuel earnings has actually been flat while a decrease of cigarette. sales compared to before the COVID-19 pandemic has had a. significant impact he said.

Plainly the last year has actually been challenging, and we're not. happy with the performance, he said.

(source: Reuters)