By Anton Bridge
TOKYO (Reuters) -Seven & I Holdings, the owner of 7-Eleven convenience stores, said it expects it will have to take a hard look at its supply chain and rein in costs as U.S. consumers grapple with the impact of U.S. tariffs.
“My assumption is that we are going to be facing a somewhat more challenging retail environment,” incoming CEO Stephen Dacus at the Japanese retail conglomerate told reporters.
Tariffs imposed and in the works as U.S. President Donald Trump seeks to reshape global trade are expected drive prices sharply higher – posing difficult challenges for retailers. U.S. consumer sentiment deteriorated in April and 12-month inflation expectations surged to the highest level since 1981.
Dacus, an outside director who will take the helm next month, added that the biggest impact of U.S. tariffs on the company will be on consumer behaviour rather than directly on its suppliers.
“In that environment, you need to look harder at your supply chain, you need to make sure you squeeze your costs really tightly, so you have really good control of it,” he said.
Reluctantly dealing with a $47 billion takeover bid from Canada’s Alimentation Couche-Tard, Seven & i has been on a push to boost corporate value. Delivering on that strategy largely hinges on improving its U.S. division of more than 12,000 convenience stores.
North American revenue accounts for 73% of Seven & i’s overall sales.
Seven & i still plans to list its North American subsidiary in the second half of 2026, but this will depend on market conditions at the time and a delay is possible, Dacus said.
“The initial public offering gives us the financial flexibility to invest a bit more aggressively in our stores,” he said, adding that he wanted to increase the number of stores with quick service restaurants as they are more profitable.
Other measures it has taken include selling off its superstore unit to Bain Capital and embarking on a share buyback programme worth around 2 trillion yen ($14 billion) through fiscal year 2030.
The company is engaging with its Canadian suitor but believes it will be difficult to gain the approval of U.S. antitrust regulators.
Dacus, who previously headed the special committee charged with examining Couche-Tard’s takeover bid, declined to comment on the status of negotiations.
“My appointment as CEO had nothing to do with the takeover offer,” Dacus said. “We don’t talk about Couche-Tard among the management team because there’s nothing we can do about it,” adding that was the role of the special committee.
Seven & i’s shares were trading around 2,100 yen on Friday morning, well below Couche-Tard’s offer price of 2,700 yen per share, indicating investor scepticism that a deal will materialise.
($1 = 142.9600 yen)
(Reporting by Anton Bridge; Editing by David Dolan and Edwina Gibbs)
