Seven & i's Ito-Yokado Unit To Exit Apparel Business, Reduce Stores

Seven & i Holdings Co., the operator of the Seven-Eleven convenience store chain said its Ito-Yokado supermarket unit will cut the number of its stores by a quarter and quit its apparel business as the retail group presses ahead with restructuring to focus more on its convenience store operations, Mainichi Japan reported.

Photo Insert: The decision comes as the Ito-Yokado unit posted a net loss for the second straight year in the year ended February 2022.

The supermarket operator will close 33 unprofitable or low-profit margin outlets in Japan by the end of February 2026.

There were a total of 126 as of the end of February. Ito-Yokado will also consolidate its back-office operations with other Seven & i group supermarket operators to reduce costs as it seeks to strengthen its food business.

The main supermarket unit of Seven & i Holdings, which started as a clothing store in 1920, will terminate its clothing business in the face of severe competition with specialized clothing retailers, though it will continue to sell other companies' clothing at its outlets.

"We will focus on the growth of our convenience store business at home and abroad," Seven & i President Ryuichi Isaka said at a press conference.

The decision comes as the Ito-Yokado unit posted a net loss for the second straight year in the year ended February 2022, as its clothing business struggled amid stiff competition with online shopping operators and specialized clothing retailers.

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