News On Japan

Seven-Eleven Outlines Bold Growth Plan

TOKYO - Seven & i Holdings has announced a new mid-term strategy targeting the addition of 2,300 stores globally by 2030—1,000 in Japan and 1,300 overseas—amid concerns that the company has grown complacent in its dominant market position.

The plan includes a focus on expanding stores with restaurant seating in North America, where 1,100 new outlets are planned.

The company had previously revealed an investment plan of 3 trillion yen to increase its global store count by 15,000. However, the latest announcement did not include detailed measures for how these goals would be achieved.

Investors expressed mixed reactions to the mid-term plan, with some noting that the strategy fell short of market expectations. Still, the company’s acknowledgment of its current challenges was seen as a positive step.

Seven-Eleven has historically driven growth through store expansion, particularly in metropolitan areas such as Tokyo and Osaka. The current strategy also includes openings near highway interchanges and in regional areas where cafeterias at research institutes and factories have shut down due to demographic decline.

Industry observers note that targeting 1,000 new stores domestically is an ambitious goal given the saturated state of Japan’s convenience store market. Some franchise owners expressed concerns that adding stores too close together could erode existing profits due to increased competition.

Despite maintaining the top position among domestic convenience store chains in store count, sales, and operating profit, Seven-Eleven has seen slower growth in same-store sales compared to rivals Lawson and FamilyMart. Analysts point to a cautious internal culture that prioritizes avoiding failure over aggressive innovation.

Franchisees have voiced dissatisfaction with rising labor and utility costs amid stagnant sales, saying support from headquarters has been insufficient. Many report declining profits year after year and frustration over the lack of meaningful assistance.

In the past, the company’s strength lay in its ability to unite headquarters and franchisees around new initiatives, such as in-store ATMs and fresh coffee service. This coordinated approach was seen as a key factor in its dominance. However, that cohesion appears to have weakened in recent years.

Some franchise owners say the loss of long-time executive Toshifumi Suzuki was a turning point. Under his leadership, franchisees often accepted demanding conditions in the belief that growth and profitability would follow. Since his departure, many say that trust has eroded and profits have not recovered.

The mid-term strategy and leadership transition have raised hopes that Seven-Eleven can restore that trust and regain its growth momentum. However, stakeholders remain focused on whether the company will move beyond cost-cutting and present concrete initiatives to drive innovation and long-term value.

Source: テレ東BIZ

News On Japan
POPULAR NEWS

Typhoon No. 15 (Chan-hom) is expected to make landfall near Ibaraki Prefecture between around 6 p.m. and 9 p.m. on August 11, bringing rapidly strengthening winds, high waves and heavy rain to parts of Kanto and southern Tohoku, with unsettled weather potentially continuing even after the storm moves inland.

Japan's H3 Rocket No. 9 successfully placed the Michibiki No. 7 navigation satellite into its planned orbit after lifting off from the Tanegashima Space Center in Kagoshima Prefecture at 4:23 a.m. on August 11, marking the country's second consecutive successful H3 launch.

The Tokaido Shinkansen operated its first overnight service ahead of the Obon holiday period, offering travelers a 15,000 yen trip from the Tokyo area to Kyoto and Shin-Osaka while allowing them to save on hotel costs and arrive earlier than the first regular morning trains.

Typhoon No. 15 is expected to approach and likely make landfall somewhere in the Kanto region on August 11, bringing strong winds and heavy rain that could disrupt conventional rail services, expressways and flights while also affecting a wider area extending into Tohoku.

Raccoons are increasingly invading homes across Japan, damaging roofs and wiring, contaminating buildings with large amounts of urine and feces, and raising concerns over agriculture, native wildlife and the spread of disease as their population continues to expand.

MEDIA CHANNELS
         

MORE Business NEWS

Japan's street-level economic sentiment improved for a third consecutive month in July, supported by sharply hotter weather after the end of the rainy season and the start of the summer vacation period, with stronger sales of products including men's parasols and air conditioners.

Tokyo stocks rose on August 10, with the Nikkei 225 closing at 66,376.25, up 1.2%, as investors bought electronics, metals and artificial intelligence-related shares, while fresh signs of a more hawkish Bank of Japan debate kept attention on the yen, bond yields and the timing of the next rate increase.

Japan recorded a current account deficit of 92.3 billion yen in June, its first shortfall in 17 months, as a sharp increase in import costs outpaced growth in exports.

Several Bank of Japan policymakers have signaled support for accelerating interest rate increases, with one member warning that the pace of hikes could become faster than financial markets currently expect as the central bank pays greater attention to upside inflation risks.

A repeat of the sharp yen appreciation seen in the summer of 2024 is unlikely under current conditions, with persistently high U.S. interest rates and continued structural pressure on Japan's currency making another rapid surge difficult, according to UBS wealth management chief investment officer Daiju Aoki.

Japanese companies delivered a wave of strong earnings on August 7, with Fujikura, Recruit Holdings, INPEX and several other major groups raising forecasts as artificial intelligence investment, higher resource prices and resilient consumer demand lifted profits.

Tokyo stocks ended slightly lower on August 7, with the Nikkei 225 closing at 65,606.71, down 76.55 points, or 0.12%, as selling in chip-related and artificial intelligence-linked shares outweighed solid buying in the broader market and a late recovery led by Fujikura.

Nippon Steel has completed a new production line at its Nagoya Works after investing about 300 billion yen, as Japan's largest steelmaker seeks to expand production of high-performance steel products primarily for automakers.