The Japanese company behind 7-Eleven has been making waves as it fights off an acquisition attempt by a Canadian competitor. A significant change in its leadership has brought about its first-ever foreign-born CEO, a move seen as a major shake-up.
Seven & i Holdings made the announcement on Thursday, naming Stephen Dacus, a well-experienced retail executive from the United States and long-serving board member, to take over as CEO. As part of its strategic shift, the company also revealed plans to launch an initial public offering for its U.S. convenience store branch, which boasts over 13,000 7-Eleven locations nationwide.
These actions represent the company’s strategic bid to avoid a takeover by Alimentation Couche-Tard, the Canadian firm known for the Circle K store chain, which has floated a massive $47 billion offer—the largest foreign bid ever for a Japanese firm.
Traditionally slow to change, Japan’s corporate environment is beginning to evolve amid growing interest from international investors. The restructuring at Seven & i, whose convenience stores are almost as iconic as Japan itself, highlights this shifting landscape.
Investors who have long agitated for the separation of the 7-Eleven business believe such a move could enhance the value of the sprawling retail empire and bring rewards to its shareholders. Meanwhile, Seven & i also plans to buy back over $13 billion of its own shares by 2030 to boost their valuation.
The company’s options to fend off Couche-Tard are narrowing, especially after a recent attempt to privatize the company by Junro Ito, the founder’s son, fell through due to lack of financing. Ito’s bid had gained traction among some top executives as a way to keep the company under Japanese control, with many valuing the preservation of its culture that places customer service and quality over Western financial priorities. On its part, Couche-Tard has expressed its intention to honor and learn from these Japanese practices.
As Mr. Dacus prepares to assume his role in May, he faces the task of convincing stakeholders that Seven & i’s revamped structure and leadership can steer the company toward growth without resorting to a sell-off. Unlike previous leaders, who were homegrown Japanese executives, Mr. Dacus has an extensive background with global brands and deep experience in Japan’s retail sector, having held top positions at firms like Uniqlo’s parent company and Walmart Japan.
Under the existing CEO, Ryuichi Isaka, Seven & i has sought to shed less profitable segments and pour more resources into the 7-Eleven franchise both locally and internationally. Last October, it unveiled plans to offload its supermarket division and spin out other non-core businesses, aiming to double annual sales to $200 billion by 2030.
However, there have been hurdles. Domestic profits from Japanese convenience stores have been stagnant, with the situation being more challenging overseas. For instance, operating income from its U.S. operations plunged by a third over a recent three-month period.
Before the latest announcements, the company’s stock had dipped over 6% after local media suggested the firm intended to reject Couche-Tard’s proposal. While Seven & i has denied this report, stating that deliberations are ongoing, the situation remains fluid.
Given the sluggish growth and investor pressures to engage with Couche-Tard’s proposal, the possibility of Mr. Dacus taking the helm was increasingly considered. This decision was being contemplated even as he led the independent panel reviewing the Canadian company’s bid, according to a source close to the matter.
