Seven & I Holdings is considering listing Ito-Yokado, the historic supermarket retail core of the company, and eventually splitting it off from the more profitable and faster-growing 7-Eleven franchise to focus its efforts on making convenience stores a global business.
The retailer¡¯s board and strategic committee will develop a plan for the split and list the legacy operation ¡°as soon as reasonably practicable,¡± the Tokyo-based retailer said in a statement Wednesday. Its stock fell 1.4% before the announcement, as news trickled out that it was planning to revamp Ito-Yokado.
Seven & I came under pressure from ValueAct Capital Management last year, when the activist investor called on it to improve its valuation and embrace ¡°bold, structural reform and pursue it with urgency.¡± The convenience store giant has taken some steps, including considering closing stores.
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