Seven & i Eyes Cost Cuts Amid U.S. Tariffs and Retail Pressures

Seven & i Holdings, the parent company of 7-Eleven, is bracing for a tougher retail landscape as U.S. tariffs weigh on consumer sentiment and inflation expectations hit their highest levels since 1981. Incoming CEO Stephen Dacus said the company must tighten its supply chain and rein in costs to navigate the evolving U.S. market, where it operates over 12,000 stores and earns 73% of its total revenue.

Dacus emphasized that the primary impact of tariffs will be on consumer behavior, rather than direct costs from suppliers. He highlighted the need to enhance cost controls and improve store profitability, particularly through expansion of quick service restaurants, which yield higher margins.

Seven & i remains committed to listing its North American unit in the second half of 2026, although market conditions could delay the IPO. The listing is expected to give the company more financial flexibility to reinvest in its stores. As part of its broader strategy to enhance corporate value, the company has sold its superstore division to Bain Capital and launched a ¥2 trillion ($14 billion) share buyback program through 2030.

Dacus, previously the head of the committee reviewing a ¥47 billion takeover bid from Canada’s Alimentation Couche-Tard, distanced his appointment from the acquisition talks. While discussions with the Canadian firm continue, Dacus noted U.S. regulatory hurdles could block the deal. Seven & i’s stock was trading at ¥2,100 on Friday, significantly below Couche-Tard’s ¥2,700 offer, reflecting investor doubts about regulatory approval.

Despite challenges, Dacus reiterated that the management team remains focused on operational growth rather than the takeover bid, signaling a strategic shift toward strengthening its U.S. presence and long-term shareholder returns.