Japan’s largest retailer Seven & i has reported a 0.6% decrease in total stores sales to JPY 5,280bn (US$51bn), with net income dipping 51% to JPY33bn (US$0.3bn).
Domestic convenience stores remain robust
Seven-Eleven Japan, which operates the group’s convenience store chain, continues its strong performance in the domestic market. It has registered total store sales of JPY 2,286bn (US$22bn), 5.5% up from previous year. Same-store sales have also grown by 1.6%, thanks to further improvement of quality for standard products.
It also achieved record-high income for a sixth consecutive year, resulted from improved sales in food products and reduced sales composition of low margin products.
North America: sales down but profit up
7-Eleven Inc, the group’s operation in US and Canada, has seen its total sales slip by 7%, mainly driven by the negative impact of the stronger Yen. Meanwhile, its income has improved by 10% despite the sluggish sales, thanks to growth in existing product sales and improved gross profit.
Challenging prospect for general merchandise
The most significant challenge Seven&i is facing is how to improve the performance of its department business Sogo & Seibu and superstore Ito-Yokado, both of which suffered a loss in the first half. Seven&i has decided to write down the value of these two formats and said it would announce a restructuring plan soon.
Meanwhile, the Group will keep expanding its omnichannel strategy, aiming for JPY300bn (US$2.9bn) of ecommerce sales by 2019.
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