Seven & i Holdings Co. announced on Wednesday that it plans to spin off and list its Ito-Yokado supermarket operations as early as fiscal 2027. This decision is part of the company’s strategy to boost the growth of the struggling business by attracting external capital. By creating a separate entity for the supermarket operations, Seven & i will be able to allocate more resources to its highly profitable Seven-Eleven convenience store business.
President Ryuichi Isaka stated at a press briefing in Tokyo that they believe it is in the best interest of the supermarket business to be able to invest in its growth independently. Despite the share sale, Seven & i will retain a stake in the supermarket unit and continue collaboration between the supermarket and convenience store businesses, particularly in the area of food development. The supermarket division has undergone significant restructuring in recent years, including the closure of unprofitable stores and the discontinuation of its apparel business, due to growing competition from online retailers and discount stores.
The decision comes after pressure from activist shareholders such as ValueAct Capital, who had previously pushed for a complete separation of the convenience store operations from other business units to enhance corporate value. In response to this pressure, Seven & i sold its department store unit, Sogo & Seibu Co., to Fortress Investment Group LLC in September of the previous year. However, despite this move, group net profit for the year ending in February dipped by 20.1%, totaling 224.62 billion yen ($1.5 billion), with sales declining by 2.9% to 11.47 trillion yen.
This latest move is expected to help increase investment into Ito-Yokado’s growth while allowing Seven & i more resources for their highly profitable convenience store business. It also shows that Seven & i continues to take action towards improving their financial health despite facing challenges such as increasing competition from online retailers and discount stores.
Seven & i Holdings Co., which acquired Speedway LLC in
