Seven & I Holdings anticipates challenges due to U.S. tariffs. They expect these tariffs to impact U.S. consumers.
Incoming CEO Stephen Dacus stated, “My assumption is that we are going to be facing a somewhat more challenging retail environment.” Tariffs imposed by President Trump are expected to significantly increase prices. This will create difficulties for retailers.
Dacus believes the biggest impact will be on consumer behavior. He said it will not be directly on their suppliers.
Dacus added, “In that environment, you need to look harder at your supply chain, you need to make sure you squeeze your costs really tightly, so you have really good control of it.”
Seven & I is dealing with a $47 billion takeover bid from Alimentation Couche-Tard. They are striving to increase corporate value. Achieving this goal depends heavily on improving their U.S. division.
North American revenue accounts for 73% of Seven & I’s overall sales.
Seven & I still plans to list its North American subsidiary in the second half of 2026. Dacus said this depends on market conditions, and a delay is possible.
Dacus stated, “The initial public offering gives us the financial flexibility to invest a bit more aggressively in our stores.” He wants to increase the number of stores with quick service restaurants. This is because they are more profitable.
The company sold its superstore unit to Bain Capital. They also started a share buyback program worth around 2 trillion yen through fiscal year 2030.
Seven & I is engaging with Couche-Tard. They believe gaining approval from U.S. antitrust regulators will be difficult.
Dacus declined to comment on the status of negotiations. He previously headed the special committee examining Couche-Tard’s bid.
Dacus stated, “My appointment as CEO had nothing to do with the takeover offer.” He also said, “We don’t talk about Couche-Tard among the management team because there’s nothing we can do about it,” adding that was the role of the special committee.
Seven & I’s shares traded around 2,100 yen on Friday morning. This is well below Couche-Tard’s offer price of 2,700 yen per share. This indicates investor skepticism about a deal.
Click here for more Business news.