Japanese convenience store giant, Seven & i Holdings, the parent company of 7-Eleven, has unveiled plans to rebrand and divest non-core assets. This move aims to showcase the company's intrinsic value, which they believe surpasses the acquisition offer from Alimentation Couche-Tard.
The company announced a provisional new name, 7-Eleven Corp., and has revised its operating profit forecast for the fiscal year ending February next year to 403 billion yen (approximately $2.7 billion). This is a decrease from a prior forecast of 545 billion yen and below analysts' average expectations of 524 billion yen.
Operating over 85,000 stores worldwide, Seven & i disclosed intentions to create a holding company for its supermarket and other retail outlets, potentially taking it public. This strategic shift will allow the company to focus more intensely on its convenience store operations and may involve introducing strategic partners to the new division.
The company acknowledged receipt of a revised proposal from Couche-Tard and assured that any decisions will prioritize the best interests of shareholders and stakeholders.
In the most recent quarter ending in August, Seven & i reported a 20% decline in operating profit to 128 billion yen, with net sales reaching 3.3 trillion yen. The company's full-year sales forecast has been revised upwards from 11.3 trillion yen to 11.9 trillion yen.
