Seven & i Is Facing Inflation Challenges, US Operations IPO Will Help Fund Store Upgrades

Japan’s Seven & i, or 7&i, is the holding company of the world’s largest convenience store chain by store count, with more than 84,000 stores under the 7-Eleven brand, mainly through a franchise model. While the chain originated in the US, it has been Japanese-owned since 1991. The North American and Japanese operations make up the majority of the group's operating profit. However, the Japanese convenience store operations are far more profitable with Seven & I Japan, or SEJ, enjoying an operating profit margin of around 25% in fiscal 2025, while 7-Eleven Inc., or SEI, is at 4.2%. Part of this is due to the significance of low-margin gasoline sales in the US. Higher margin food sales make up 68% of the Japan store sales and just 26% of its US store sales.