Seven & i to close 14 Ito-Yokado stores
It aims to focus its core strategy on food.
Seven Eleven convenience store operator, Seven & i will be closing 14 stores of its Ito-Yokado (IY) business and exiting from the apparel business in line with the structural transformation of its operations.
In a statement, Seven & i noted that there is a need to improve the profitability and capital efficiency of the super stores as an individual segment, particularly in IY.
The closure of the IY stores will accelerate the company’s focus in the Tokyo Metropolitan area. By 2026, the number of IY stores will be cut to 93 by February 2026 from 126.
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This is in line with the company’s target to reach an earning before interest, tax, depreciation and amortisation of around $402.4m (JPY55b) by 2025 in the Tokyo metropolitan area. It also aims to achieve a return on investment capital of over 4% within three years.
“Going forward, in addition to delivering the results of such structural reforms, we will further accelerate the fundamental structural change towards the Group’s growth strategy with food at its core. The goal is to achieve a self-sufficient management organization that can independently pursue a re-growth phase,” its statement read.
Aside from this, the company will stop its apparel business to focus on the core strategy of food.
Seven & i will also integrate IY and York Co. Ltd. as Metropolitan SST “as Metropolitan SST to maximize the synergy in the Metropolitan area and the operational efficiency.”
$1 = JPY136.69