Seven & I Holdings, the largest retail group in Japan, set some new reformations for its retail stores, seeing a 6.3% hike in its stock price. (Image via The Strait Times)

Seven & I Holdings' share to grow amid reformation

Alfonsus Adi Putra
Business & Industry
Retail & Food Services
Oct 12, 2019
2780
After falling by more than 20% during half of 2019, on Friday, the largest Japanese retail group based in Tokyo, Seven & I Holdings, recorded a 6.3% rise in their stock price – the most significant rise in two years – due to some reformations done within its retail stores; Sogo and Seibu, and its convenience store; 7-Eleven. The CEO of Seven & I Holdings, Ryuichi Isaka, revealed the reformation plan and data.

The reformations involved the closure of 1,000 poor-performing stores and terminated 3,000 employees. On Thursday, Seven & I Holdings closed 5 Seibu and Sogo stores; 1,300 terminations. It also closed 33 merchandise stores in Ito-Yokado on the same day which meant 1,700 employee terminations. That totaled 3,000 terminations. Therefore, by the end of February 2020, there will be 144,268 employees in total.

Not only store closures and work terminations but Seven & I Holdings also introduced some new policies. Seven & I Holdings will require a lower monthly fee. Also, 7-Eleven will take a ¥10 billion charges for the new incentive it is taking.

Seven & I Holdings will offer assistance to keep the 7-Eleven stores open for 24 hours a week. The policy is frowned upon by the Japanese regulators, and other retail owners worldwide.

The Japanese retail group forecast a 2% rise in its annual operating profit to ¥420 billion, marking another record for the ninth consecutive year. Seven & I Holdings caught under fire in recent months due to its e-payment platform, 7 Pay, was hacked. The platform was closed in September.

Source: https://bit.ly/2B7XEs2

Business , Service , Retail , Asia , Japan , 7-Eleven