By Eru Ishikawa
Seven & i Holdings Co., the target of a buyout proposal by Canada’s Alimentation Couche-Tard Inc., is a sprawling global retailer that includes banking, online ticketing, superstores and even Tower Records, a once-popular US record store that went bankrupt.
The Japanese retailer originated as a clothing store a century ago and evolved into a general merchandiser, selling everything from groceries and sundries, to clothing and home goods as Ito-Yokado. After bringing 7-Eleven shops and Denny’s restaurants to the country in 1974, the convenience store concept turned out to be transformational for the company, which later took over the entire chain and embraced it as part of its name.
Over the past several years, Seven & i’s sprawl has attracted the attention of activist investors, who have pushed for the retailer to focus its efforts on turning the 7-Eleven network into a global powerhouse, given the strength of the brand and its operating prowess. The Japanese retailer should be worth more than it does now — ¥5.62 trillion ($38.4 billion) — without a conglomerate discount, they have argued.
Seven & i has responded by moving to streamline its business; last year, the retailer sold the Sogo & Seibu Co. department store chain and is considering a listing of its Ito-Yokado stores. But with Couche-Tard’s approach and ongoing investor scrutiny, pressure will remain on the Japanese company to boost value.
Any potential deal to buy the entirety of Seven & i would be Japan’s biggest-ever inbound acquisition. Here’s a look at what makes up the business:
7-Eleven Japan
With 21,618 shops across the archipelago, 7-Eleven is Japan’s biggest retailer, offering an array of food, beverages and goods, as well as its own ATM network and other services. Along with competitors FamilyMart and Lawson, convenience stores can be found in almost every part of the island nation.
The franchise is known for its grab-and-go meals ranging from egg-salad sandwiches and fried chicken, to bento boxes and noodles. Seven & i sells more than 2 billion onigiri rice balls each year. Sales totaled ¥5.3 trillion in the latest fiscal year through Feburary.
The franchise’s private-label goods, 7-Premium, can be found in other stores within the Seven & i empire. The retailer has also formed partnerships with cities and towns so that residents can access and print official documents at any 7-Eleven without the need to visit government offices.
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US, Asia convenience stores
The world’s first convenience store, 7-Eleven’s predecessor, opened on a dock of an icehouse in Dallas, Texas, in 1927. The business evolved into an iconic American brand with memorable beverage product names such as the Big Gulp and Slurpee, becoming a destination for people on the go, especially at gas stations.
7-Eleven also pioneered the use of to-go coffee cups, self-serve soda fountains and serving hot food. It’s become a popular neighbourhood shop in other countries in Asia, including Singapore, Taiwan and China. Seven & i now includes Speedway and Sunoco gas stations in North America.
With franchises owned and operated by individual store owners as well as directly-owned outlets 7-Elevens now operates in 19 countries, numbering more than 84,000 stores.
Ito-Yokado, supermarkets
Seven & i’s original retail operation, which predated the encounter with 7-Eleven, traces its roots to a small store in Tokyo’s Asakusa district. Employing more than 28,000 employees, Ito-Yokado sells household products, food and clothing, often at prime real estate locations. With 21 stores across 18 prefectures, the group made ¥1.2 trillion in its the latest fiscal year.
Over the years, Ito-Yokado branched out internationally, opening stores in Chengdu and Beijing. In 2023, Ito-Yokado merged with York Corporation, a supermarket chain. Ito-Yokado’s logo, a white pigeon flying behind a blue and red background, is widely recognised in Japan.
Shell Garden is a high-end supermarket owned by Seven & i, located mainly around the Tokyo area, offering a selection of health-oriented and imported foods. York-Benimaru operates across 247 stores in northern Japan, while Tenmaya stores can be found around Okayama prefecture on the main island of Honshu.
There’s also Seven Farm, which collects food waste that gets turned into compost used to grow vegetables that are sold in its stores.
Financial services
Many people can take care of most of their banking needs at ATMs located in 7-Eleven stores, which have also become an indispensible way for foreign tourists to withdraw cash while visiting Japan.
With more than 27,000 terminals, the ATMs aren’t just in stores but also at airports and train stations. The banking service also operates overseas, with roughly 3,800 ATMs in Indonesia and the Philippines, and 15,400 in North America.
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Tower Records, Akachan Honpo
The iconic record shop, which went bankrupt in the US and was resurrected as an online music store, still exists in Japan as a Seven & i business. An eight-story building stands in Tokyo’s Shibuya area emblazoned with the bold red Tower Records lettering against a yellow backdrop.
Tower Records debuted in Japan in 1979 as an importer of vinyl records. The store and brand proved to be an enduring hit, with cafes, live spaces for hosting concerts, as well as collaborations with artists and characters to sell apparel and merchandise.
Akin to Babys R Us, Akachan Honpo has operated for decades in Japan selling childrens’ clothes, diapers, toys and strollers at 126 physical stores and via its app, which boasts more than 2 million users. Net sales totaled ¥83 billion in the year ended February.
Security services
York-Keibi, a subsidiary, manages an array of security personnel for transport, facilities and events.
The business even has security guards disguised as average shoppers to patrol against shoplifters, providing professional services to various clients.
E-Commerce and online ticketing
Seven Net Shopping is the franchise’s most prominent e-commerce platform, offering merchandise, e-books, CDs, and games, with annual sales of ¥19.2 billion. Other online sites include Seven Dream Dot Com, one of the first companies to enter the market using 7-Eleven stores as a platform. The company also operates ticketing services and operates call-centers.
Pia Corporation is one of Japan’s leading ticket sales and entertainment companies, hosting music events and providing media content centered around leisure. The company also handles ticketing for international events, including for the Tokyo 2020 Olympics.
Loft
Often compared with Muji, Loft stores attract shoppers looking for stylish home goods.
With 138 locations and a well-recognized mustard-yellow logo, Loft sells lifestyle merchandise ranging from stationery to interior decor.
