Japanese retail giant Seven & i Holdings (3382.T) has announced an aggressive growth strategy for its 7-Eleven convenience store chain, aiming to accelerate its global presence and expand into new markets.
Global Expansion Goals
- Increase global 7-Eleven stores by 18% to approximately 100,000 by 2030
- Expand presence to 30 countries and regions, up from 20 currently
- Accelerate entry into Europe, Latin America, the Middle East, and Africa
Restructuring Strategy
The expansion plan is part of a larger restructuring effort, driven by pressure from activist investors, which includes:
- Divesting lower-performing supermarket assets
- Exiting non-core businesses, such as apparel
- Selling underperforming units, including the recent sale of Sogo & Seibu department stores
- Acquiring convenience stores in key markets, including a $2 billion deal in Australia and the United States
Mergers and Acquisitions
7-Eleven North America chief Joseph Michael DePinto emphasized the company’s commitment to pursuing mergers and acquisitions in the region, stating that they will “continue to aggressively pursue opportunities” to drive growth.
Investor Support
ValueAct Capital, a U.S.-based investor that had previously criticized the company’s asset allocation, has praised the restructuring plan and announced its support for the company’s board nominees, marking a significant shift in investor sentiment.
Background
Seven & i Holdings has been under pressure from activist investors to optimize its asset allocation and improve performance. The company has responded with a comprehensive restructuring plan, which includes the sale of underperforming assets and the expansion of its 7-Eleven chain.