Seven & I: Department Store Operations Undergoing Strategic Review, Financial Advisors Hired

By Kosaku Narioka

Seven & i Holdings Co. said its supermarket business is key to growing its convenience stores in Japan, fending off calls from some shareholders to sell off the less profitable businesses.

The owner of 7-Eleven and other retail stores said Thursday the convenience store can take advantage of the hypermarket’s supply chain and ability to source products.

Meanwhile, Seven&i said its department store business was undergoing a strategic review for which it had hired financial advisers.

Earlier this year, San Francisco-based activist investor ValueAct Capital LP asked Seven&i’s board of directors to set up a committee to review strategic alternatives, including the potential sale of units, as he was calling on Seven & i to focus on its convenience store business. .

Seven&i’s net profit rose 18% to 210.77 billion yen ($1.70 billion) for the fiscal year ended February, as revenue rose 52% to 8.750 billion yen, he said.

Operating profit fell 4.4% for its domestic convenience store business to 223.40 billion yen and rose 62% for its overseas convenience store business to 159.87 billion yen. Operating profit from its supermarket business fell 37% to 18.79 billion yen.

Write to Kosaku Narioka at [email protected]