ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Companies

Seven-Eleven to 'reconstruct' business after 24-hours outcry

Group chief apologizes for causing concern as chain limits openings

A 7-Eleven convenience store in Tokyo (Photo by Maho Obata)

TOKYO -- Seven & i Holdings, the parent of Seven-Eleven Japan, has vowed to change the way its convenience store chain does business after the struggles of franchisees provoked controversy.

Ryuichi Isaka, Seven & i's president, on Tuesday apologized for the way the chain's insistence on 24-hour operations caused concern earlier this year. "We will reconstruct our business model by limiting new store openings," Isaka said at the company's shareholders meeting.

Seven-Eleven previously said it would open 150 stores for the year through February 2020, marking its slowest expansion in 40 years. The company, which expects to log a record consolidated operating profit for the ninth straight year, aims to focus on strengthening support for existing stores.

While the chain is raking in money, Japan's serious labor shortage is pushing up operating costs and making it harder for franchisees to keep their stores open 24/7. When the issue first came to light, the company refused to relent, but it has since shown some flexibility about opening hours.

Seven-Eleven has tested shorter hours at a number of stores. The company is also aiming to address criticism over food waste by allowing stores to lower the prices of unsold bento lunches and other products nearing their expiry dates.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends June 30th

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media