Seven & i Holdings announced on Wednesday that it will spin off its supermarket business Ito-Yokado and list it as a separate company as early as fiscal 2027, as part of its efforts to use outside capital to spur growth in struggling businesses.
The spin-off will allow Seven & i to concentrate its management resources on the convenience store “7-Eleven'' business, which is its source of income. The Japanese retail giant, which acquired US convenience store chain Speedway LLC in 2021, has announced that it is considering further acquisitions in North America.
Seven & i Holdings President Ryuichi Isaka explains company strategy to reporters in Tokyo on April 10, 2024 (Kyodo News)
Seven & i President Ryuichi Isaka told reporters in Tokyo, “We have come to the conclusion that it is best (for the supermarket business) to be able to make investments for growth on our own.''
Seven & i announced that it will continue to hold a stake in the division after the stock sale and will maintain cooperation in the supermarket and convenience store business in the field of food development.
In recent years, the supermarket sector has been undergoing large-scale restructuring, including closing unprofitable stores and withdrawing from the apparel business, amid intensifying competition from online shopping and discount stores.
The move comes after ValueAct Capital, a U.S. investment fund and activist shareholder in the Japanese retailer, called on the company last year to completely separate its convenience store business from its other businesses to increase corporate value. This follows.
Faced with such pressure, Seven & i sold its struggling department store division Sogo & Seibu to US fund Fortress Investment Group LLC last September.
Separately, Seven & i said its group net profit for the year ended February was 224.62 billion yen ($1.5 billion), down 20.1% year-on-year, and sales were 11.47 trillion yen, down 2.9%. Announced.
