7-Eleven franchisees may be struggling in the U.S., but there were smiles in the boardroom in Tokyo as Japan’s Seven and I Holdings Co Ltd, owner of the 7-Eleven convenience store chain, posted a 9.5 percent rise in first-quarter profit.
According to Reuters, “Seven and I has been generating annual record profits for two years, but the first-quarter result marked its first record high for that specific period since 2007.”
7-Eleven’s Japanese parent has been profiting from its aggressive store expansion strategy, even as 7-Eleven franchisees complain that new stores being opened too close to existing franchises is cannibalizing their sales and threatening their survival.
“…buoyed by an expansion of its store network,” Reuters reported, 7-Eleven’s Tokyo-based parent “left its full-year operating profit forecast for the year to February unchanged at a record 340 billion yen ($3.41 billion), in line with forecasts.”
“Seven and I’s shares… have surged nearly 60 percent since mid-November…”
Well, even though U.S. 7-Eleven franchise stores are being seized both by federal authorities and by questionable terminations by the franchisor, at least the Japanese investors are happy!
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