Seven & i Holdings Co. has announced plans to spin off and publicly list its Ito-Yokado supermarket operations by fiscal 2027, in order to drive growth in the struggling business through external capital. This decision was made in response to the rising competition from online retailers and discount stores, as well as pressure from ValueAct Capital, a U.S. investment fund and activist shareholder of Seven & i, who demanded complete separation of the convenience store operations from other businesses to enhance corporate value.
President Ryuichi Isaka of Seven & i shared the company’s strategy with reporters in Tokyo on April 10, 2024. He stated that allowing the supermarket business to make investments for its growth independently was deemed the best course of action, even after the share sale. Despite this, Seven & i will still retain a stake in the supermarket unit and will continue to collaborate with the convenience store business in terms of food development.
The Ito-Yokado supermarket unit has been undergoing significant restructuring in recent years, which included closing unprofitable stores and exiting the apparel business. This was necessary due to the increasing competition from online retailers and discount stores. The decision to spin off the supermarket operations follows a demand from ValueAct Capital, a U.S. investment fund and activist shareholder of Seven & i, who wanted completely separate convenience store operations from other businesses to enhance corporate value.
In response to this pressure, Seven & i sold its department store unit Sogo & Seibu Co., U.S fund Fortress Investment Group LLC in September of the previous year
