SEVEN & i Holdings, the target of a buyout proposal by Canada’s Alimentation Couche-Tard, is a sprawling global retailer that includes banking, online ticketing, superstores and even Tower Records, a once-popular US record store that went bankrupt.
The Japanese retailer originated as a clothing store a century ago and evolved into a general merchandiser, selling everything from groceries and sundries, to clothing and home goods as Ito-Yokado. After bringing 7-Eleven shops and Denny’s restaurants to the country in 1974, the convenience store concept turned out to be transformational for the company, which later took over the entire chain and embraced it as part of its name.
Over the past several years, Seven & i’s sprawl has attracted the attention of activist investors, who have pushed for the retailer to focus its efforts on turning the 7-Eleven network into a global powerhouse, given the strength of the brand and its operating prowess. The Japanese retailer should be worth more than it does now – 5.6 trillion yen (S$49.8 billion) – without a conglomerate discount, they have argued.
Seven & i has responded by moving to streamline its business; last year, the retailer sold the Sogo & Seibu department store chain and is considering a listing of its Ito-Yokado stores. But with Couche-Tard’s approach and ongoing investor scrutiny, pressure will remain on the Japanese company to boost value.
Any potential deal to buy the entirety of Seven & i would be Japan’s biggest-ever inbound acquisition. Here’s a look at what makes up the business:
7-Eleven Japan
With 21,618 shops across the archipelago, 7-Eleven is Japan’s biggest retailer, offering an array of food, beverages and goods, as well as its own ATM network and other services. Along with competitors FamilyMart and Lawson, convenience stores can be found in almost every part of the island nation.
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The franchise is known for its grab-and-go meals ranging from egg-salad sandwiches and fried chicken to bento boxes and noodles. Seven & i sells more than two billion onigiri rice balls each year. Sales totalled 5.3 trillion yen in the latest fiscal year to February.
The franchise’s private-label goods, 7-Premium, can be found in other stores within the Seven & i empire. The retailer has also formed partnerships with cities and towns so that residents can access and print official documents at any 7-Eleven without the need to visit government offices.
US, Asia convenience stores
The world’s first convenience store, 7-Eleven’s predecessor, opened on a dock of an icehouse in Dallas, Texas, in 1927. The business evolved into an iconic American brand with memorable beverage product names such as the Big Gulp and Slurpee, becoming a destination for people on the go, especially at gas stations.
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