Seven & i Holdings Plans Major Strategic Changes to Enhance Shareholder Value in the Coming Years

On March 6, 2025, Seven & i Holdings Co., Ltd., known for its flagship convenience store chain 7-Eleven, unveiled an ambitious plan aimed at unlocking substantial value for its shareholders. The announcement outlines a comprehensive strategy that includes significant leadership changes, the pursuit of an initial public offering (IPO) for 7-Eleven in North America by late 2026, and a bold commitment to return a reported 2 trillion yen (approximately $13.2 billion) to shareholders through share buybacks and a progressive dividend policy.

Transformational Leadership Changes

As part of the initiative, the company will appoint Stephen Hayes Dacus as the new President, Representative Director, and CEO after the upcoming Annual General Meeting in May 2025. Dacus, who has been a board member since May 2022 and has served as the Chairman and Lead Independent Outside Director since April 2024, aims to accelerate the execution of the Group's strategic priorities. Ryuichi Isaka, the current President, will transition to the role of Senior Advisor, continuing to provide guidance during this pivotal change. The leadership transformation is designed to streamline the decision-making process and drive focused efforts towards meeting the company's goals.

7-Eleven IPO: A New Chapter

A cornerstone of the announced strategy is the anticipated IPO of 7-Eleven, known as SEI, in North America. The management believes that this move will not only unlock a significant amount of value for shareholders but also enhance SEI's autonomy, allowing it to capitalize on its leading position in the North American convenience store market. By creating two independent public companies, the company aims to increase financial flexibility for the SEI business while maintaining synergies with the parent company, ensuring continued brand strength and recognition.

Sale of Superstore Business Group

In a significant strategic shift, Seven & i Holdings has negotiated a definitive agreement with Bain Capital for the sale of its Superstore Business Group for 814.7 billion yen (approximately $5.37 billion). This decision is part of the company's broader effort to focus on its convenience store operations and streamline its business model. The sale is expected to close in September 2025, following which the proceeds will be directed towards enhancing shareholder returns and funding share buybacks.

Commitment to Shareholders

Regarding shareholder returns, the company pledges to use proceeds from both the SEI IPO and the sale of its Superstore Business Group for extensive share buybacks, ensuring a direct benefit to its investors. With a target to commence buybacks shortly after the closing of the Superstore sale, the company is committed to providing greater certainty around capital returns to its shareholders by the fiscal year 2030. Furthermore, a progressive dividend policy will be implemented, aimed at maintaining or increasing dividend payouts from ordinary business operations over time.

Strategic Vision and Future Outlook

Alongside these initiatives, Seven & i Holdings is set to deconsolidate its ownership of Seven Bank, selling down its stake to below 40%. This decision is expected to further enhance the Group’s operational effectiveness while pursuing its goals in the convenience store sector.

The company emphasizes that these moves are crucial in simplifying its structure and unlocking substantial value for shareholders, which aligns with its comprehensive business transformation plans. Given the rapidly changing retail environment and competitive landscape, the management remains focused on delivering results and ensuring sustainable growth.

In conclusion, with the strategic leadership changes, the pursuit of an IPO for SEI, and a robust commitment to shareholder returns, Seven & i Holdings is positioning itself to navigate the evolving market landscape successfully. By continuously refining its business operations and focusing on core strengths in the convenience segment, the company aims to elevate its status and shareholder value significantly in the years ahead.