TOKYO (Reuters) – Japanese retailer Seven & i Holdings said on Wednesday it was considering listing its supermarket business, which mainly consists of supermarkets, as part of a plan to maximize corporate value.
Under pressure from activist investors, Seven&i is selling off underperforming retail assets and doubling down on its global convenience store business centered around its flagship 7-Eleven brand.
The company said in a statement that it was considering an initial public offering of its supermarket segment, which includes Ito-Yokado stores, “as soon as practicable,” while its global convenience store business was likely to become its core business. pillar of growth.
Seven & I said its board was considering a plan to maintain a stake in the supermarket segment following its demerger in 2026.
Since last year, the company announced the closure of dozens of Ito-Yokado supermarkets, exited its clothing business and completed the sale of its Sogo & Seibu department store division.
The company also agreed to spend more than $2 billion to acquire convenience store assets in Australia and the United States. There are now more than 80,000 7-Eleven convenience stores around the world.
Seven&i’s corporate predecessor first licensed the 7-Eleven franchise from US company Southland Corp in 1973. Later in 1991, the Japanese conglomerate acquired the American company.
Along with Seven Bank and other financial subsidiaries, the group’s vast retail empire includes Speedway gas stations in the United States and Denny’s (NASDAQ:) restaurants in Japan.
Last year, Seven & i faced a lawsuit from US activist fund ValueAct Capital, which urged the company to consider spinning off its convenience store division.
ValueAct did not immediately respond to requests for comment on reports that Seven & i was considering listing its stores in Ito-Yokado.