Seven & i Holdings announced a major restructuring plan on the 10th. The company will establish an intermediate holding company on the 11th to integrate the businesses of Ito-Yokado and other supermarkets, restaurants, and specialty stores. This move is seen as preparation for future corporate listing. At the same time, the company plans to change its name to “7-11 Corporation (tentative name)” next year. These measures seem aimed at rapidly streamlining businesses outside of the main convenience store operations and increasing corporate value to address potential acquisition risks.

At an online press conference, Seven & i Holdings President Ryuichi Isaka explained the goals of the group restructuring. He stated, “Supermarket businesses grow at different rates, making it difficult to invest in growth under the same roof,” emphasizing the importance of concentrating resources on the convenience store business. Regarding the approximately 7 trillion yen acquisition proposal from Canadian convenience store giant Alimentation Couche-Tard, Isaka said, “If the proposal is to increase corporate value, we will respond seriously.”

The newly established intermediate holding company is named “York Holdings.” While currently wholly owned by Seven & i, there are plans to transform it into an equity method company by late February 2026 through external investment and co-investment with the founding Ito family. This move aims to improve profitability and prepare for future listing.

York Holdings will integrate 31 companies, including supermarket operators, the miscellaneous goods store Loft, baby goods store Akachan Honpo, and Seven & i Food Systems, which operates the Denny’s family restaurant chain. Regarding the financial business centered on Seven Bank, Isaka stated, “We will consider the best capital relationship.”

Seven & i Holdings also announced its consolidated financial results for the interim period ending August 2024 on the same day. The report shows that the company’s convenience store business is facing difficulties both domestically and internationally. Operating income, representing the company’s main business profit, decreased by 22.4% compared to the same period last year, falling to 186.9 billion yen. Additionally, the company recorded an extraordinary loss of about 45.8 billion yen due to Ito-Yokado’s withdrawal from the online supermarket business.

Affected by these factors, Seven & i Holdings has significantly revised its net profit forecast for the fiscal year ending February 2025 from 293 billion yen to 163 billion yen. This adjustment reflects the current operational challenges faced by the company.

Key points:

• Seven & i Holdings announces the establishment of an intermediate holding company, York Holdings, to integrate non-convenience store businesses.
• The company plans to change its name to “7-11 Corporation (tentative name)” next year.
• York Holdings will integrate 31 non-convenience store business companies and plans to become an equity method company by February 2026, preparing for future listing.
• The company is considering how to respond to the acquisition proposal from Canadian convenience store giant Alimentation Couche-Tard.
• The interim financial report for August 2024 shows a 22.4% year-on-year decrease in operating income, and the company has lowered its net profit forecast for the fiscal year 2025.
• These measures aim to increase corporate value and address operational challenges and potential acquisition risks.