Seven-Eleven Japan (SEJ) is currently implementing its Action Plan, announced in April 2019, targeting the sustainable growth of franchisees. Under the Plan, SEJ continues working to create an environment where franchisees can focus on their business operations with peace of mind. In addition, the impact of COVID-19 has caused commercial areas to shrink in size and highlighted growing differences in customer needs among individual stores. In the fiscal year under review, we focused on strengthening our response to one-stop shopping demand, expanding our assortment of high-value-added merchandise, and stepping up promotions to increase the frequency of store visits and attract new customers. To address growing demand for delivery services, we increased the number of stores handling “7NOW”, a service that allows customers to order items via smartphone and have them delivered to a designated location in as little as 30 minutes. With a view to meeting diversifying needs and providing convenience to all communities, meanwhile, we have worked to realize sustainable growth throughout the value chain, including franchisees and business partners.
As a result, existing store sales increased year on year, due to a rebound from the previous year when consumers refrained from going out to prevent the spread of COVID-19, although sales remained weak due to unseasonable weather in the summer, which had a downward impact on consumption. Total sales of all stores in the chain (the sum of sales from directly managed stores and franchisees) amounted to ¥4,952.782 billion, up 1.7% year on year. However, operating income decreased 4.4%, to ¥223.091 billion, due to lower merchandise gross profit margins resulting from changes in merchandise sales trends and an increase in selling, general, and administrative expenses.

In North America, personal consumption continued growing amid an increase in the consumer price index, stemming from the implementation of various government policies and other factors, despite of new outbreaks of COVID-19.
In response to changing lifestyles, 7-Eleven, Inc. strove to expand new services by increasing the number of stores that offer the “7NOW” delivery service, digital wallet, mobile checkout, and other solutions. At the same time, it continued focusing on developing and selling fast food and private brand merchandise.
On May 14, 2021, 7-Eleven, Inc. acquired from U.S. company Marathon Petroleum Corporation shares and other equity interests in a convenience store business operated primarily under the Speedway brand. Since then, the Speedway business has been included in the scope of consolidation. The acquisition of Speedway is aimed at creating further synergies, and all processes related to its integration, including management, operations, and employee awareness initiatives, have proceeded smoothly.
As a result, existing store sales on a U.S. dollar basis increased year on year. In yen terms, total sales of all stores in the chain (the sum of sales from directly managed stores and franchisees) amounted to ¥6,463.940 billion, up 89.7% year on year. Operating income rose 88.6%, to ¥224.864 billion.

Ito-Yokado, operator of general merchandise stores, continued promoting business and store structural reforms in the fiscal year under review. Sales of food merchandise, which grew in the previous year in line with stay-at-home demand, remained high as Ito-Yokado meticulously responded to changing customer needs.
Existing store sales (including tenants) increased year on year, partly in reaction to the previous year’s shortening of operating hours and partial tenant closures at Ario. However, Ito-Yokado’s operating income declined 79.2%, to ¥1.62 billion, partly due to fixed costs related to closures stemming from the spread of COVID-19, which were treated as special losses in the previous fiscal year.
In addition, existing store sales at York-Benimaru, a food supermarket operator, declined year on year, mainly due to a recoil from the previous fiscal year, which saw firm stay-at-home demand as consumers refrained from dining out. York-Benimaru’s operating income declined 11.1%, to ¥14.704 billion.

In order to promote its large-scale commercial base strategy, which is a key element of the Group Strategy, the Group integrated its “Department store operations” and “Specialty store operations” segments into a single segment, called “Department and specialty store operations.”
For department store operation, existing store sales increased year on year due to a rebound from the previous year, which saw shortened operating hours and restrictions on the number of customers entering stores. As for restaurant operation, however, business conditions remained challenging due to shortened operating hours and restrictions on the serving of alcoholic beverages. As a result, the Department and specialty store operations segment posted an operating loss of ¥8.153 billion, down ¥9.291 billion from the previous fiscal year.
On September 1, 2021, Sogo & Seibu merged with Seven & i Asset Management, which was the property management company for the Seibu Ikebukuro main store.
In addition, based on the idea regarding the business portfolio that was presented in our “Medium-Term Management Plan 2021‐2025”, effective March 1, 2022, the Group transferred to ABC-MART, INC. all issued shares of Oshman's Japan held by the Group.

At fiscal year-end the number of domestic ATMs operated by Seven Bank stood at 26,194, up 508 from a year earlier. In addition, average ATM transaction per day amounted to 96.7 (up 7.0 year on year), due to a rebound from the previous year when consumers refrained from going out to prevent the spread of COVID-19, as well as an increase in the number of cash charge transactions at ATMs as consumers opted for various cashless payments. As a result, overall visits to Seven Bank’s ATMs increased year on year. At fiscal year-end, Seven Bank had cash and deposits (including cash for ATM loading) of ¥934.6 billion.