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Seven & I Holdings

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Seven & i Holdings Co., Ltd. (株式会社セブン&アイ・ホールディングス) is a Japanese diversified retail holdings company headquartered in Nibanchō, Chiyoda, Tokyo. On September 1, 2005, it was established as a result of the integration of three companies: Ito-Yokado, Seven-Eleven Japan, and Denny's Japan. The purpose of this establishment was to create a holding company that would own these three companies. The background behind this decision was that the parent company, Ito-Yokado, was facing deteriorating performance, while its subsidiary, Seven-Eleven Japan, was experiencing growth in both sales and profits and was performing well.

Seven & i Holdings Co., Ltd.
Native name
株式会社セブン&アイ・ホールディングス
Kabushiki gaisha Sebun ando Ai Hōrudingusu
Company typePublic KK
TYO: 3382
TOPIX Core 30 Component
IndustryRetail
Founded1 September 2005; 19 years ago (2005-09-01) (from merger)
Headquarters8-8 Nibanchō, Chiyoda, Tokyo, Japan
Key people
Ryuichi Isaka (Chairman, President & Representative Director)
ServicesDepartment stores, Superstores, Supermarkets, Convenience stores, Restaurants, Financial services
RevenueDecrease US$80.125 billion (2023)[1]
Decrease US$1.569 billion (2023)[1]
Total assetsUS$70.789 billion (2023)[1]
Total equityUS$20.290 billion (2023)[1]
Owner
List
Number of employees
117,540 (2023)[1]
Subsidiaries
List
  • Seven-Eleven Japan
  • Ito-Yokado
  • York Benimaru
  • Barneys Japan
  • Seven & i Food Systems
  • Loft
  • Seven Financial Service
  • Seven & i Net Media
  • Seven Financial Service
WebsiteOfficial website Edit this at Wikidata
A 7-Eleven convenience store in Japan
Ito-Yokado store in Numazu featuring the revived "Pigeon Mark"
Denny's diner-style restaurant in Warabi, Saitama, still displaying the old "Denny's" logotype that was used in the United States between 1973 and 1994

History

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On April 20, 2005, the supermarket chain Ito-Yokado announced the establishment of a holding company called Seven & i Holdings in September of the same year. This holding company was formed in collaboration with its subsidiary convenience store chain, Seven-Eleven Japan, and the restaurant chain, Denny's Japan. At the time, Ito-Yokado, which was facing declining performance, had a market capitalization that was approximately 70% of the rapidly growing Seven-Eleven, causing an imbalance in the parent-child relationship within the group. The purpose of this restructuring was to resolve this imbalance and prepare for hostile takeovers. At the time, Ito-Yokado held over 50% of the issued shares of both Seven-Eleven and Denny's. After the restructuring, all three companies became 100% subsidiaries of the holding company. This restructuring also included other entities like Aiwai Bank (later renamed Seven Bank) and York-Benimaru, which were brought under the umbrella of the holding company. The group as a whole aimed to collaborate on product development, procurement, and the consolidation of management functions.

In November 2005, Seven & i acquired the shares of 7-Eleven, Inc. through a public tender offer, making it a wholly-owned subsidiary via Seven-Eleven Japan.[2]

 
Seibu Department Store in Ikebukuro, Tokyo

On December 25, 2005, Seven & i solidified its plans to merge with Millennium Retailing, which owns the department stores Seibu and Sogo. On December 26, Seven & i officially announced its intention to bring Millennium Retailing under its umbrella and integrate their operations by June of the following year. The combined domestic sales of both groups would reach a scale of 5 trillion yen when simply added together, surpassing Japan's largest Aeon Group. Their global sales, including U.S.-based 7-Eleven, would exceed 7 trillion yen, ranking them around second place in the world. While Seven-Eleven Japan and the financial business were performing well, the supermarket industry was experiencing declining sales. The integration with Millennium Retailing aimed to achieve operational efficiency through the consolidation of management functions and other measures. Millennium Retailing had already completed the revitalization of its subsidiaries Seibu and Sogo and was planning to go public in the next two to three years. However, they chose the path of integration with Seven & i instead.[3]

On August 11, 2006, Seven & i purchased Lombard, Illinois-based White Hen.[4]

On June 11, 2012, Seven & i, through its 7-Eleven, Inc. subsidiary, acquired 23 convenience stores in the US from Strasburger Enterprises, Inc.[5]

On December 4, 2013, Seven & i purchased 44.99% ownership of Barneys Japan Co., Ltd. from "a fund operated by Tokio Marine Capital". Barneys Japan "has a network of 10 stores in Japan, including five outlet stores" and, "for the year ending February 2013, Barneys Japan posted sales of ¥19.52 billion." After this transaction, Sumitomo Corporation will continue to retain a majority stake of 50.01% in Barneys Japan Co., Ltd.[6]

On January 29, 2014, Seven & i, through its subsidiary Seven & i Net Media, acquired 50.71% of Nissen Holdings, which is engaged in the mail order sale of clothing and daily necessities, the retail and wholesale of gift products through stores, catalogs, Internet and mobiles. Also, Nissen is involved in the life insurance, casualty insurance agency, credit card and money lending business.[7][8]

On April 6, 2017, Seven & i announced they would be acquiring 1110 convenience stores from American fuel company Sunoco for $3.3 billion, as well as that they would be supplied 2.2 billion gallons of fuel annually from Sunoco for 15 years.[9] Sunoco said they would be selling 200 more stores to Seven & i in Q4, 2017.[10]

The current President of Seven & i, Ryuichi Isaka, was appointed to that position on May 26, 2016, replacing Noritoshi Murata, who resigned his position along with Chief Executive and Chairman Toshifumi Suzuki in April 2016,[11] after activist investor Daniel Loeb, who owns an undisclosed stake in Seven & i through his investment company Third Point, raised concerns about rumours that Suzuki was grooming his son, Yasuhiro Suzuki, as his successor.[12]

In July 2019, 7-Eleven launched, then almost immediately suspended, a mobile payment service, 7pay. The service was hacked upon launch and attackers were able to spend money from affected customers' accounts.[13] The service was announced to be entirely cancelled following a review of the infrastructure it ran on.

On August 2, 2020, Seven & i announced they were purchasing convenience store competitor Speedway LLC from Marathon Petroleum for $21 billion. The deal had closed on May 14, 2021.[14][15][16]

In April 2023, Barneys Japan was sold to Laox Holdings.[17]

On January 26, 2021, the U.S. investment fund ValueAct Capital, which owns approximately 4.4% of the shares, demanded that Seven & i, a company in which they hold an ownership stake, focus on its convenience store business, which accounts for a significant portion of Seven & i's operating profit.[18]

On November 11, 2022, Seven & i announced the sale of Sogo and Seibu (formerly Millennium Retailing) to the U.S. investment fund Fortress Investment Group. On September 1, 2023, they formally confirmed the sale to the investment fund. The sale price of Sogo and Seibu was reduced from the initially planned 250 billion yen to 220 billion yen. Seven & i relinquished 916 billion yen worth of debt out of the 1,659 billion yen it held against Sogo and Seibu to alleviate the financial burden on Sogo and Seibu. The company announced that the final transfer price would be 85 million yen by adjusting for the net debt and working capital of Sogo & Seibu and its subsidiaries.[19][20] In response to this sale, the Sogo and Seibu labor union conducted a strike on August 31.[21]

In November 2023, Seven & i purchased the Australian franchise of 7-Eleven from the Withers and Barlow families for 1.71 billion AUD. [22]

On August 19, 2024, Canadian multinational convenience store operator Alimentation Couche-Tard Inc. offered to buy Seven & i.[23][24] On September 6, 2024, the C$38.7 billion takeover bid was rejected by Seven & i as too low and fraught with regulatory risk, although a "sweetened offer" would be considered.[25] On October 9, 2024, Seven & i acknowledged it had an increased bid from Alimentation Couche-Tard that it is reviewing. The next day, October 10, Seven & i announced it would be separating its non-core assets in a new holding company called York Holdings, and rename itself 7-Eleven Corp.[26]

Subsidiaries and affiliates

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  • Seven-Eleven Japan (based in Japan)
    • SEJ Finance and SEJ Service holding companies (based in the United States)
  • Ito-Yokado - supermarket chain
  • Seven Bank (46.4%, TYO: 8410) - online banking & operating ATMs at Seven & i Group stores
  • Sogo & Seibu - sold to Fortress Investment Group in 2023
  • Loft (75.2%) - retail stores specializing in stationery, household goods, kitchenware, cosmetics, and specialty items
  • Seven & i Food Systems - operating Denny's restaurants in Japan; the company has held an exclusive trademark right of using "Denny's" (name, logo, etc.) in Japan since 1984 and operates independently of Denny's Corporation (without any licensing or franchise agreements)
  • Seven & i Net Media[27]
    • Nissen Holdings [28][29] - catalog, online retailing, real store sales
  • Tower Records Japan (45%)

Senior leadership

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Seven & i has been led by a president & CEO since the founding of the group in 2005. The current president is Ryuichi Isaka, having been appointed in May 2016 after weeks of boardroom drama with his predecessor, Toshifumi Suzuki.[30]

List of presidents and CEOs

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  1. Toshifumi Suzuki (2005–2016)[31]
  2. Ryuichi Isaka (since May 2016)

References

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  1. ^ a b c d e "Seven & I Holdings". Fortune Global 500. Fortune. Retrieved 2024-08-24.
  2. ^ "セブン―イレブン・ジャパン、米子会社のＴＯＢ終了" [Seven-Eleven Japan terminates TOB of its U.S. subsidiary]. Yomiuri Shimbun. November 10, 2005. p. 8.
  3. ^ "セブン＆アイが西武・そごうを傘下に 流通、世界有数へ" [Seven & i to become one of the world's leading distribution companies by acquiring Seibu and Sogo.]. Yomiuri Shimbun (in Japanese). December 26, 2005. p. 1.
  4. ^ "7-Eleven Parent Company Buys White Hen Pantry". The New York Times Company. August 11, 2006. Archived from the original on February 24, 2018. Retrieved August 11, 2012.
  5. ^ "Seven & I Holdings : Notice Regarding the Acquisition of Stores from Strasburger Enterprises, Inc". 4-Traders. June 15, 2012. Archived from the original on July 31, 2013. Retrieved August 29, 2012.
  6. ^ Amanda Kaiser (December 4, 2013). "Seven & i Buys Stake in Barneys Japan". WWD. Retrieved December 4, 2013.
  7. ^ "Nissen Holdings Co. Ltd. announces results of takeover bid launched by subsidiary of Seven & I Holdings Co., Ltd". Reuters. Archived from the original on March 6, 2014. Retrieved March 6, 2014.
  8. ^ "Nissen Holdings company profile". Reuters. Archived from the original on March 6, 2014. Retrieved March 6, 2014.
  9. ^ "Sunoco to sell 1,110 U.S. stores to 7-Eleven operator for $3.3 billion". Reuters. April 6, 2017. Retrieved April 6, 2017.
  10. ^ Soble, Jonathan (April 6, 2017). "7-Eleven's Parent Will Buy Sunoco's Convenience Stores". The New York Times. ISSN 0362-4331. Retrieved April 6, 2017.
  11. ^ "Seven & i set to appoint Isaka next president as management shakeup continues". The Mainichi. Retrieved December 25, 2016.
  12. ^ "Seven & i's 83-year-old CEO quits after board rejects his proposal". Reuters. Retrieved December 25, 2016.
  13. ^ "Users of 7-Eleven's mobile payment service lose total of ¥55 million after 900 accounts hacked". The Japan Times. July 4, 2019.
  14. ^ "Marathon Petroleum Corp. Announces Close of $21 Billion Speedway Sale and Return of Capital Plans". Marathon Petroleum.com. May 14, 2021.
  15. ^ Krauss, Clifford (2 August 2020). "Marathon Is Selling Speedway Gas Stations to 7-Eleven's Parent for $21 Billion". The New York Times. Retrieved 3 August 2020.
  16. ^ Ando, Ritsuko; Singh, Kanishka (2 August 2020). "Japan's Seven & i seals $21 billion deal for Marathon Petroleum's Speedway gas stations". Reuters. Retrieved 4 August 2020.
  17. ^ Van, Tong (2023-04-12). "Laox Holdings to acquire Barneys Japan". Inside Retail. Retrieved 2023-05-03.
  18. ^ "「コンビニに集中」要求 対セブン＆アイ 米ファンドが書簡". Yomiuri Shimbun (in Japanese). January 27, 2022. p. 8.
  19. ^ "Notice Regarding Completion of Transfer of Subsidiary Shares and Resulting Change of Subsidiaries" (PDF). ISeven & i Holdings Co., Ltd. 1 September 2023. Retrieved 3 September 2023.
  20. ^ "企業価値２２００億円だった「そごう・西武」、８５００万円で売却…セブン＆アイ一転減益へ". Yomiuri Shimbun (in Japanese). 2 September 2023. Retrieved 3 September 2023.
  21. ^ "そごう・西武 売却発表 池袋本店スト休業 セブン＆アイ" [Seven & i announces sale of Sogo & Seibu; Ikebukuro main store closed due to strike]. Yomiuri Shimbun (in Japanese). September 1, 2023. p. 1.
  22. ^ "Japan's Seven & i expands 7-Eleven empire with purchase of Australian franchise". Reuters. Retrieved December 19, 2023.
  23. ^ Davis, River Akira (19 August 2024). "7-Eleven Gets Buyout Offer From Canadian Owner of Circle K". The New York Times.
  24. ^ Deschamps, Tara. "Canada's Couche-Tard makes preliminary takeover bid for operator of 7-Eleven". CBC News. Retrieved 30 August 2024.
  25. ^ Yoshida, Koh (6 September 2024). "Seven & I Rejects Couche-Tard's Takeover Proposal as Too Low". BNN Bloomberg. Retrieved 6 September 2024.
  26. ^ Bridge, Anton. "Japan's Seven & i, facing a $47 billion Couche-Tard bid, to separate some assets". Reuters. Retrieved 19 October 2024.
  27. ^ "Seven & I Net Media Co Ltd". Bloomberg Businessweek. Retrieved March 6, 2014.
  28. ^ "Seven & I to buy Net retailer Nissen". The Japan Times. Retrieved March 6, 2014.
  29. ^ "Fact Sheet". Nissen Holdings Co., Ltd. Archived from the original on March 6, 2014. Retrieved March 6, 2014.
  30. ^ "Seven & I shareholders approve Ryuichi Isaka as chief to lead growth". 26 May 2016.
  31. ^ "7-Eleven CEO Resigns as Loeb's Hedge Fund Prevails in Japan Boardroom Fight". WSJ. 7 April 2016.
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