Japanese retail giant Seven & i Holdings revealed on Thursday its successful agreement to acquire the 7-Eleven convenience store chain in Australia for A$1.71 billion ($1.1 billion). This move signifies a strategic expansion of Seven & i’s ownership of the globally renowned 7-Eleven brand.
The Australian convenience and petrol retail business, comprising 751 stores, was set on the path of a sale earlier this year by its owners, the Withers and Barlow families. Seven & i sees this acquisition as an opportunity to establish itself as the unequivocal leader in the Australian convenience store market, which it believes holds significant growth potential. The company expressed intentions to actively open new stores across various Australian states, anticipating further market share gains.
Notably, Seven & i’s association with the 7-Eleven franchise dates back to 1973 when its corporate predecessor first licensed it from the U.S.-based Southland Corp. Since the takeover of the U.S. company in 1991, Seven & i now commands a network of over 80,000 7-Eleven convenience stores globally. Besides this acquisition, Seven & i Holdings boasts a diverse retail portfolio, including Speedway gas stations in the U.S. and Ito-Yokado supermarkets in Japan.
Despite its global success, Seven & i has faced pressure from analysts and investors to streamline its operations. Earlier this year, it addressed challenges from U.S.-based activist fund ValueAct Capital, which advocated for the spin-off of the 7-Eleven convenience store chain. In response, Seven & i initiated measures to reshape its structure, including the closure of 14 Ito-Yokado supermarket stores in Japan, the exit from its apparel business, and the completion of the sale of its Sogo & Seibu department store unit.
