7-Eleven to Sell Stores, Cut Jobs

TOKYO—Shares of Japan's Seven & I Holdings rose nearly 6% on Friday after the retail group said it will shut down or relocate nearly 1,000 7-Eleven convenience stores and cut about 3,000 jobs as part of a restructuring effort, according to Channel News Asia.

The company announced plans to lower franchise fees at its 7-Eleven convenience stores and offer franchisees more assistance to keep the stores open 24 hours, a move likely to help franchisees hit margins. The plans were announced after the company faced complaints by franchise owners, some of whom were forced to keep working amid massive snowstorms or in the wake of a family death, which attracted nationwide attention and scrutiny from regulators.

It also announced on Thursday that it will accelerate closures of some Ito-Yokado supermarkets, as well as poorly performing department stores under the Sogo and Seibu brands. The company will cut around 3,000 jobs throughout the group over the next few years, management said. The company’s workforce totaled 144,628 employees at the end of February.

Seven & I Holdings reiterated its forecast for a 2% rise in annual operating profit to $3.89 billion, putting it on track for its ninth consecutive year of record earnings.