Seven & i Completes Supermarket Spin-Off to Focus on Convenience Stores

Seven & i Holdings Co. said it has completed the sale of a subsidiary operating about 30 retailers, including the struggling Ito-Yokado supermarket chain, to a US private equity firm, as it shifts focus to its 7-Eleven convenience store business, Kyodo News reported.

Seven & i plans to open about 1,000 new convenience stores in Japan and 1,300 in North America. (Photo: bongs Lee Wikimedia Commons)

The company announced in March it would sell the subsidiary, York Holdings Co., to Bain Capital for 814.7 billion yen ($5.5 billion).

Bain will hold 60% of York Holdings, with the remainder retained by Seven & i and its founding family. York Holdings also operates Denny’s Japan Co., variety goods chain The Loft Co., and children’s clothing retailer Akachan Honpo Co.

The reorganization comes as Seven & i seeks to boost shareholder value after Canadian retailer Alimentation Couche-Tard Inc., operator of Circle K, withdrew its $47 billion buyout proposal in July following nearly a year of talks.

As part of its growth strategy through the year ending February 2031, Seven & i plans to open about 1,000 new convenience stores in Japan and 1,300 in North America.

At home, its Seven-Eleven Japan Co. faces stiff competition from Lawson Inc. and FamilyMart Co.