7-Eleven’s parent company, Seven & i Holdings, recently sent out a letter to its shareholders outlining the advantages of its “food-focused” strategy.
Some of these advantages of Seven & i’s food-focused strategy mentioned in the letter include how its unique expertise in food drives growth at each stage of its supply chain, and with its variety of food offerings, the company has the leverage to continue growing.
“By leveraging our company’s extensive product development and supply network, our global CVS (convenience store business) business can provide the highest-quality food offerings compared to our competitors — a true differentiator in the industry,” Seven & i said in the letter.
Also, in the letter, Seven & i touched on its investments in its CVS and how important it is for the company to continue improving its portfolio when the time is right.
“Today, our CVS business, which includes our domestic Seven-Eleven Japan Co. (SEJ), North American 7- Eleven Inc. (SEI) and other overseas 7-Eleven International LLC (7IN) businesses, contributes over 80% of the company’s revenue and profit,” Seven & i stated in the letter. “We have achieved this through carefully planned strategic investments in CVS and divestitures of non-core assets. We are leveraging the food expertise of SEJ, including its private brand, product development and procurement networks, and delivery model, to expand private-label food offerings throughout our global CVS business, including SEI, to enhance sales and margin expansion.”
The same day this letter was sent out, ValueAct Capital, a shareholder of Seven & i, published a presentation that focused on the case for change at Seven & I, which came after Seven & i declined ValueAct’s board nominees.
However, Seven & i’s letter encourages shareholders to vote for Seven & i’s slate of board nominees in connection with its annual general meeting on May 25, 2023.
Based in Irving, Texas, 7-Eleven operates, franchises and/or licenses more than 13,000 stores in the U.S. and Canada. In addition to 7-Eleven stores, 7-Eleven Inc. operates and franchises Speedway, Stripes, Laredo Taco Co. and Raise the Roost Chicken and Biscuits locations. It is known for its iconic brands such as Slurpee, Big Bite and Big Gulp.