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Seven & i Holdings Co Ltd - Stock Quote 3382

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Morningstar's Seven & i Holdings Co Ltd Stock Analysis

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Seven & i's Midterm Plan Reinforcing Our Thesis of Growth Potential of U.S. C-Store Prepared Food

Jeanie Chen Senior Equity Analyst

Business Strategy and Outlook

| Jeanie Chen |

The domestic convenience store operations under the 7-Eleven banner have been a key driver of Seven & i Holdings' growth. After accelerating its domestic store expansion and adding more than 7,600 stores between 2011 and 2018, management has shifted its focus from quantity back to quality of store operations and profitability. Management intends to fix the widened variance in store performance resulting from massive new store openings and lift the targeted return on investment from the current 11% to 15%. It has lowered its new store opening target to less than half of 2018's level to 600-plus stores while accelerating closures of the underperforming stores.

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Seven & i Holdings Co Ltd's Company Profile

Business Description

Seven & i Holdings operates 7-Eleven, the world’s largest convenience store chain, with nearly 72,000 stores globally. C-store operations, mainly in Japan and North America, represent 75% of group sales (54% of operating revenue) and nearly 85% of operating profits. 7-Eleven Japan (SEJ), the market leader in Japan’s C-store industry, has acquired 45% value share and 38% share in store count. 7-Eleven Inc (SEI), the largest C-store chain in the U.S., made a USD 21 billion acquisition of Speedway in 2020. The deal will lift its total store count to about 13,700 stores. Other retail activities including superstores, department stores, and specialty retailers either earn low margins or are in red. The financial business, mainly ATM operations, is the other key profit contributor.

Contact
8-8, Nibancho, Chiyoda-ku
Tokyo, 102-8452, Japan
T +81 362383000
Sector Consumer Defensive
Industry Grocery Stores
Most Recent Earnings Feb 28, 2022
Fiscal Year End Feb 28, 2022
Stock Type
Employees 170,757