Debate Over Foreign Takeover Sparks at 7-Eleven Japan

Jun Nagao, a former 7-Eleven franchise owner in Japan, along with other franchisees, criticizes the strategic missteps of Seven & i Holdings. They express skepticism about a foreign takeover by Canada's Couche-Tard but acknowledge the need for change. The debate underscores a struggle with competition and rising costs.

Jun Nagao, a former 7-Eleven franchise owner in Gunma, Japan, voiced his concerns about the current state of Seven & i Holdings, which operates the retail giant. Despite opposing foreign takeovers on principle, Nagao admits a Canadian bid from Alimentation Couche-Tard might ignite much-needed change.

Nagao and other franchisees criticized Seven & i's failures, such as the short-lived 7pay cashless system, and expressed that the $38.5 billion bid from Couche-Tard could address longstanding issues. Although Seven & i rejected the bid, it remains a pivotal moment, highlighting mismanagement and the need for a governance overhaul.

Seven & i's share performance lagged behind market benchmarks and rivals, despite highly profitable domestic operations. Franchisees raised concerns about operational decisions and royalties, emphasizing a potential foreign ownership as a wake-up call to create value and innovate in a stagnant market.

(With inputs from agencies.)