Seven & i, based in Japan, enhances its 7-Eleven empire through the acquisition of an Australian franchise

02 Dec, 2023

Seven & i, based in Japan, enhances its 7-Eleven empire through the acquisition of an Australian franchise

Japanese retail giant Seven & i Holdings announced on Thursday (Nov 30) that it has reached an agreement to acquire the 7-Eleven convenience store chain in Australia for A$1.71 billion (S$1.5 billion), marking a significant expansion of its brand ownership.

The Australian convenience and petrol retail business, previously owned by the Withers and Barlow families, initiated the sale process earlier this year, encompassing its network of 751 stores.

This strategic acquisition positions Seven & i as the prominent player in the Australian convenience store market, with substantial growth prospects, according to a statement from the Japanese conglomerate. The company envisions further expansion by actively opening new stores across various Australian states.

Seven & i's connection with the 7-Eleven franchise dates back to 1973 when its corporate predecessor first licensed it from the US-based Southland Corp. Taking over the US company in 1991, Seven & i now oversees a global network of over 80,000 7-Eleven convenience stores.

Apart from its 7-Eleven portfolio, Seven & i boasts a diverse retail empire, including Speedway gas stations in the US and Ito-Yokado supermarkets in Japan.

However, the company has faced calls from analysts and investors to streamline and divest underperforming assets. Earlier this year, it confronted a board challenge from US-based activist fund ValueAct Capital, advocating for the spin-off of the 7-Eleven convenience store chain. In response, Seven & i has taken measures to reshape its structure, closing 14 Ito-Yokado supermarket stores in Japan, exiting the apparel business, and completing the sale of its Sogo & Seibu department store unit.