Japanese retailer Seven & I Holdings has announced a restructuring plan detailing its intention to sell struggling departments stores and establish a real estate division.
This is part of its strategy to focus on bolstering profits at its key 7-Eleven business.
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The new division will be set up this year.
It plans to redevelop locations occupied by struggling stores into commercial or residential facilities.
Furthermore, the retailer plans for a capital alliance with a local retailer, which will see it transfer three Sogo & Seibu department stores to the local partner, reported Bloomberg.
This move comes after US activist investor Daniel Loeb of hedge fund Third Point LLC had been prodding the retailer.
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By GlobalDataSeven & I president Ryuichi Isaka was quoted by Wall Street Journal as saying: “We will speed-up expansion in North America by accelerating acquisitions.”
The Japanese retailer intends to boost its store count in North America to 10,000 by 2019.
It had around 8,900 stores in the US and Canada at the end of June this year.
More than 80% of its convenience stores in North America are owned by smaller firms. Seven & I had around 60,000 Seven-Eleven stores across the world, including around 18,800 in Japan at the end of June.
