7-Eleven’s Comeback Plan

The new president of parent group Seven & i Holdings Co. has big plans on how to turn the convenience store chain around.

September 16, 2016

TOKYO – The new boss of 7-Eleven’s parent company, Seven & i Holdings Co., promised to unveil a plan to bolster the convenience store chain’s success around the world within 100 days of taking office. However, President Ryuichi Isaka has been in office for nearly four months without delivering anything specific, Bloomberg reports.

Since Isaka’s installation, Seven & i Holdings shares dropped 8%, with the decrease so far in 2016 reaching 22%. The retailer has also seen its market value plummet more than $10 billion, as domestic customers have pulled back on spending and international competition has heated up.

However, Seven & i Holdings has said a strategic growth plan, along with its second-quarter earnings statement, will be announced on October 6. While specific details have not been released, Isaka has said he wants to add to the number of U.S. 7-Eleven locations and change up their menus to include burritos and Mediterranean pasta. “That could be a nice frontier for the company if things go well,” said Naoki Fujiwara, chief fund manager at Shinkin Asset Management Co.

“By being late on the first promise, Isaka might risk being seen as a weak leader,” said Howard Yu with the International Institute for Management Development. “For a CEO, not only colleagues but the investor community are forming opinions based on limited information, and those opinions [can be] long-lasting.”

Industry analysts have speculated that Isaka will focus on regaining prominence in the Japanese market, where it has the most stores. Competitors Lawson and FamilyMart have made serious inroads into 7-Eleven Japan’s primacy.

Advertisement
Advertisement
Advertisement