TOKYO – The Wall Street Journal reports that Seven & I Holdings Co., the parent of 7-Eleven, is planning to expand its convenience store business in North America and seek more acquisition opportunities. The company will also divest itself of some unprofitable businesses in Japan, including department stores.

“We will speed up expansion in North America by accelerating acquisitions,” said Ryuichi Isaka, president of Tokyo-based Seven & I, at a news conference.

In a media release, the company explains: “In the North American convenience store industry, gasoline majors withdrew from the retail business of operating gas stations accompanied by convenience stores, and the withdrawal triggered a restructuring of the industry by dedicated convenience store chains, which still continues. Under those circumstances, SEI adopted more stringent standards for opening new stores in 2012, clarifying the conversion of its policy from quantity to quality. Through organizational reinforcement, along with the effect of expanding the opening of new stores in urban areas where there are high sales of fast foods, SEI has established a management framework that enables the expansion of new store openings while maintaining quality.

“Simultaneously, we aim to achieve a higher average of daily sales by strengthening the product supply infrastructure, by building on the capital investment in Prime Deli Corporation in Texas, U.S.A., a product
supplier to SEI by Warabeya Nichiyo Holdings Co., Ltd., the largest supplier of nakashoku, i.e., ready-made meals usually purchased in-store and taken home, in our domestic convenience store business.”

As part of Seven & I’s three-year plan, the Journal notes that the company plans to increase its c-store count in North America to 10,000 by fiscal year 2019, noting that more than 80% of convenience stores in the region are owned by smaller companies or individual proprietors.

Isaka also commented that some elements of the Japanese-style c-store model will be introduced in North America, such as counters featuring hot snacks and more fresh foods.