Seven & i Maps Massive 7.5 Trillion Yen Investment & Shareholder Return Plan
Convenience giant targets significant growth and investor payouts by 2030
Seven & i Holdings is set to inject a colossal 7.5 trillion yen into its operations between fiscal years 2025 and 2030, signaling an aggressive push for growth and substantial returns for its shareholders.
Strategic Capital Allocation Unveiled
The retail conglomerate plans to dedicate approximately 3.2 trillion yen towards strategic growth initiatives, with a focus on “bolt-on” mergers and acquisitions that offer synergistic benefits to its existing business portfolio. Concurrently, roughly 2.8 trillion yen is earmarked for shareholder returns, prominently featuring a 2 trillion yen share buyback program.
Ambitious Financial Targets Set
By fiscal 2030, Seven & i aims to reach approximately 11.3 trillion yen in sales, a significant increase from its fiscal 2022 performance of 10 trillion yen under its consolidated convenience store operations in Japan and abroad. The company projects a total operating profit of 3.4 trillion yen and an EBITDA of 1.3 trillion yen. Return on Invested Capital (ROIC) is targeted at around 12.6%, with Earnings Per Share (EPS) expected to reach 210 yen.
Leadership’s Vision for Growth
President Stephen Hayes Deicas expressed confidence that achieving these plans would elevate the company’s stock value to par with Canadian retail giant Alimentation Couche-Tard. He also revealed plans for an initial public offering (IPO) of 7-Eleven North America by the second half of fiscal year 2026, anticipating that this move will crystallize its value and provide capital for further investment and shareholder returns.
“We have not been able to gain as trust as our customers as before. We are unable to actively accept changes as our founders did. There are parts that we are restoring our current situation. Our brand image is declining.”
—Stephen Hayes Deicas, President
The company is also focusing on enhancing its domestic convenience store business, Seven-Eleven Japan (SEJ), by adding approximately 1,000 new stores by fiscal 2018 and investing in over 5,000 existing locations to bolster food supply capabilities. In North America, the strategy includes opening 1,100 new stores, many featuring restaurants, to boost competitive advantage in fresh food offerings. In 2023, U.S. convenience store sales reached $45.9 billion. (Statista, 2023).
Revitalizing Brand and Operations
Deicas acknowledged a perceived decline in the brand’s image and customer trust, emphasizing a commitment to regaining the company’s founding spirit. He highlighted that this new strategic plan, developed under his leadership, offers clear objectives and timelines, a departure from previous approaches, and clarifies the role of the holding company in strengthening management processes.
Following Alimantasyon Kstaal‘s withdrawal of its acquisition proposal, Seven & i is under pressure to independently enhance its corporate value. The company is divesting its supermarket business, York Holdings, and has completed the deconsolidation of Seven Bank, streamlining its focus on the convenience store sector starting September.
