Segment Information

Last update: January 12, 2024

Results for the Third Quarter of FY2023

In Domestic convenience store operations, revenues from operations amounted to ¥700,065 million (104.2% year on year), and operating income amounted to ¥199,004 million (107.4% year on year).
SEVEN-ELEVEN JAPAN CO., LTD. (“SEJ”) is focusing on addressing changes in customers’ purchasing behavior that emerged from the COVID-19 pandemic, in addition to population aging and increases in single-person households and working women. Accordingly, SEJ has been implementing activities including strengthening the development of original merchandise such as fast food and Seven Premium, changing store layouts in order to increase the number of items carried, and conducting sales promotions that produce an event-like sense of excitement. In addition, SEJ has been enhancing measures to achieve a nationwide roll-out of the “7NOW” delivery service. These measures include establishing a system to increase the number of stores handling the service. Further, SEJ launched the “7NOW App” on September 5, 2023.
In the nine months ended November 30, 2023, we benefited from the success of various measures such as proactively conducting limited-time sales promotions, setting themes based on region, menu, etc., and offering a varied assortment of merchandise for each theme, and conducting sales promotion initiatives leveraging our app. We also benefited from a recovery in customer traffic brought on by the resumption of special exhibitions and events in each region and favorable weather, while some concerns still remained about the COVID-19 pandemic. As a result, existing store sales increased year on year. Moreover, operating income was ¥199,703 million (107.6% year on year). Total store sales (the sum of sales from directly operated stores and franchisees) amounted to ¥4,050,296 million (104.3% year on year).
SEJ marked its 50th anniversary in 2023. Looking ahead, SEJ will seek to foster the well-being of all its stakeholders not only through its traditional strength of “convenience”, but also through a four-part vision encompassing health, community, the environment, and human resources, in order to contribute to the solution of social issues.

In Overseas convenience store operations, revenues from operations amounted to ¥6,357,719 million (95.9% year on year), and operating income amounted to ¥231,287 million (101.6% year on year).
In North America, 7-Eleven, Inc. (“SEI”) faced a tough consumer spending environment due to an economic stimulus package during COVID-19 having ended, in addition to ongoing concerns about the economy slowing in connection with inflation and monetary tightening. Nevertheless, SEI worked to address the needs of customers seeking value, strengthen the development and sales of high-quality, high-margin proprietary products (fresh food items, proprietary beverages, and private brand products), bolster “7NOW” delivery service initiatives, and enhance customer loyalty through the use of digital technology. Also, SEI started operations at its Virginia plant on September 11, 2023 as part of steps to strengthen the development of high-quality fresh food items by building a value chain in North America.
As a result, in the nine months ended November 30, 2023, merchandise sales at existing stores in the U.S. increased year on year in U.S. dollars. Moreover, total store sales (the sum of sales from directly operated stores and franchisees) amounted to ¥7,614,299 million (97.7% year on year) due to lower gasoline prices and lower sales volume, despite growth in merchandise sales. Meanwhile, operating income amounted to ¥313,632 million (102.6% year on year) due to factors such as improvement in the merchandise gross profit margin and impact from yen depreciation.
In addition, the integration process with the Speedway business acquired in May 2021 is proceeding smoothly, with synergies amounting to U.S.$800 million expected to be generated in the fiscal year ending December 31, 2023.
7-Eleven International LLC has plans to establish a store network of 50,000 stores in areas outside Japan and North America by the fiscal year ending December 31, 2025, and to open stores in 30 countries and regions worldwide, including Japan and North America by the fiscal year ending December 31, 2030. Based on these goals, it will advance growth strategies both in countries where it already has stores and those where it will open stores for the first time. As for existing countries, 7-Eleven International LLC decided in February 2023 to invest in the Vietnam business, and announced in November 2023 the acquisition of the Australian company Convenience Group Holdings Pty Ltd (SEA). And for new countries, the first store was opened in Israel in January 2023 and in Laos in September 2023. As a result, 7-Eleven has the stores in 20 countries and regions worldwide.

In Superstore operations, revenues from operations amounted to ¥1,086,301 million (102.0% year on year), and operating income amounted to ¥2,405 million (169.7% year on year).
Ito-Yokado Co., Ltd. is implementing growth initiatives and fundamental reforms to improve profitability. As part of those efforts, Ito-Yokado, Co., Ltd. and York Co., Ltd. completed a merger on September 1, 2023 with Ito-Yokado Co., Ltd. being the surviving company and York Co., Ltd. being the dissolved company. By maximizing both companies’ synergies and operational efficiencies, we are working to strengthen sales capabilities, reduce SG&A expenses, and improve productivity. In addition, we are making strategic investments in infrastructure such as process centers and online supermarkets.
In the nine months ended November 30, 2023, sales rose year on year accompanying the merger with York Co., Ltd. However, the operating loss amounted to ¥7,031 million (operating loss of ¥5,617 million for the same period of the previous fiscal year), mainly owing to higher costs associated with strategic investments in infrastructure.
For York-Benimaru Co., Ltd., we are furthering initiatives to revitalize existing stores, enhance development and sales of delicatessen merchandise in order to realize its concept of “making the daily meals of customers in local areas more enjoyable, plentiful, and convenient.” In the nine months ended November 30, 2023, existing store sales increased year on year, as it benefited from the success of suitable price increases in response to soaring raw material prices, and sales promotion initiatives, in addition to a recovery in customer traffic. As a result, York-Benimaru’s operating income amounted to ¥12,721 million (106.0% year on year), despite an increase in SG&A expenses such as new store-related costs and personnel costs. York-Benimaru will continue enhancing its high-growth integrated delicatessen production and sales business model, and to target sustainable growth as a supermarket operator that proposes lifestyle solutions.

In Financial services, revenues from operations amounted to ¥155,799 million (106.9% year on year), and operating income amounted to ¥29,020 million (96.9% year on year).
As of November 30, 2023, the number of domestic ATMs operated by Seven Bank, Ltd. stood at 27,232, up 343 from the previous fiscal year-end. The average number of transactions per day per ATM amounted to 104.5 (up 4.1 year on year), owing to improvement in the number of transactions at deposit-taking institutions in step with a rebound in customer traffic and an increase in non-banking transactions such as consumer finance in line with increased demand for funds, as well as a sustained high level of cash charge transactions as consumers opted for various cashless payments. As a result, total transactions of Seven Bank’s ATMs during the nine months ended November 30, 2023 increased year on year. As of November 30, 2023, Seven Bank had cash and deposits (including cash for ATM loading) of ¥930.1 billion.
In addition, on July 1, 2023, we transferred all shares of Seven Card Services Co., Ltd. owned by Seven Financial Service Co., Ltd., a consolidated subsidiary of the Company, to Seven Bank, Ltd. Through this transaction, we aim to capture synergies by integrating the management of banking and non-banking businesses.

Geographic Area Segments

(Fiscal years ended February 28 or 29.)

Business Segments

Revenues from Operations

Domestic convenience store operations

Overseas convenience store operations

Superstore operations

Department and Specialty Store Operations

Financial services

Others

Eliminations/Corporate

(¥ Billion)

(Millions of yen)

For the fiscal year 2018 2019 2020 2021 2022
Domestic convenience store operations 955,443 971,236 920,832 873,239 890,293
Overseas convenience store operations 2,821,053 2,739,833 2,191,383 5,194,327 8,846,163
Superstore operations 1,902,507 1,849,121 1,810,884 1,810,728 1,449,165
Department and Specialty Store Operations - 912,060 684,660 712,282 463,739
Financial services 215,007 217,367 198,927 194,399 194,295
Others 23,720 25,202 22,011 20,340 26,044
Eliminations/Corporate (74,093) (75,695) (66,277) (55,567) (58,398)
Total 6,791,215 6,644,359 5,766,718 8,749,752 11,811,303

Operating Income

Domestic convenience store operations

Overseas convenience store operations

Superstore operations

Department and Specialty Store Operations

Financial services

Others

Eliminations/Corporate

(¥ Billion)

(Millions of yen)

For the fiscal year 2018 2019 2020 2021 2022
Domestic convenience store operations 246,721 256,601 234,258 223,396 232,033
Overseas convenience store operations 92,266 102,001 98,097 159,866 289,703
Superstore operations 21,173 21,307 29,683 18,791 12,107
Department and Specialty Store Operations - 8,279 (17,444) (8,153) 3,434
Financial services 52,874 53,610 48,077 37,549 37,140
Others 2,659 1,554 1,944 (115) (466)
Eliminations/Corporate (14,515) (16,296) (25,911) (43,681) (67,432)
Total 411,596 424,266 366,329 387,653 506,521

Assets (at fiscal year-end)

Domestic convenience store operations

Overseas convenience store operations

Superstore operations

Department and Specialty Store Operations

Financial services

Others

Eliminations/Corporate

(¥ Billion)

Assets (at fiscal year-end)

(Millions of yen)

For the fiscal year-end 2018 2019 2020 2021 2022
Domestic convenience store operations 1,147,777 1,224,157 1,252,296 1,182,328 1,204,038
Overseas convenience store operations 1,371,383 1,401,418 2,284,682 4,126,637 5,764,895
Superstore operations 945,406 959,853 963,545 972,803 983,632
Department and Specialty Store Operations - - 566,491 531,990 526,288
Financial services 1,514,897 1,666,038 1,788,607 1,711,943 1,905,942
Others 159,168 160,882 156,651 36,070 39,473
Eliminations/Corporate 194,920 138,909 51,850 177,506 126,685
Total 5,795,065 5,996,887 6,946,832 8,739,279 10,550,956

(Notes) "Partial Amendments to the Accounting Standard for Tax Effect Accounting" (ASBJ No.28; February 16, 2018), etc. have been applied from the beginning of the first quarter of the fiscal year ended February 29, 2020, and results for the fiscal year ended February 28, 2018 and February 28, 2019 are those after retrospective application.

Capital Expenditures

Domestic convenience store operations

Overseas convenience store operations

Superstore operations

Department and Specialty Store Operations

Financial services

Others

Eliminations/Corporate

(¥ Billion)

(Millions of yen)

For the fiscal year 2018 2019 2020 2021 2022
Domestic convenience store operations 115,525 104,226 129,028 99,801 95,913
Overseas convenience store operations 288,221 134,684 145,170 178,435 188,641
Superstore operations 61,462 47,310 48,411 62,139 54,643
Department and Specialty Store Operations - 22,398 26,160 15,090 19,292
Financial services 34,918 36,099 39,328 37,323 34,223
Others 2,931 2,798 1,760 2,323 469
Eliminations/Corporate 10,157 14,127 (11,771) 44,516 38,778
Total 539,328 360,909 377,299 439,630 431,961

(Notes) Capital expenditures include long-term leasehold deposits and advances for store construction.

Depreciation and Amortization

Domestic convenience store operations

Overseas convenience store operations

Superstore operations

Department and Specialty Store Operations

Financial services

Others

Eliminations/Corporate

(¥ Billion)

(Millions of yen)

For the fiscal year 2018 2019 2020 2021 2022
Domestic convenience store operations 72,717 76,519 79,856 80,781 85,553
Overseas convenience store operations 76,141 77,204 81,299 127,193 192,968
Superstore operations 24,475 26,071 26,929 28,600 35,389
Department and Specialty Store Operations - 14,335 14,598 14,460 14,034
Financial services 31,072 29,031 28,766 31,783 32,227
Others 2,267 2,447 2,269 877 950
Eliminations/Corporate 1,651 2,238 3,038 8,865 14,973
Total 221,133 226,475 235,504 292,561 376,097

Geographic Area Segments

Revenues from Operations

Japan

North America

Others

(¥ Billion)

(Millions of yen)

For the fiscal year 2018 2019 2020 2021 2022
Japan 3,812,200 3,745,475 3,435,146 3,468,840 2,930,711
North America 2,862,627 2,782,055 2,232,234 5,170,053 8,824,900
Others 117,555 118,118 100,707 112,500 71,990
Eliminations (1,167) (1,289) (1,371) (1,642) (16,299)
Total 6,791,215 6,644,359 5,766,718 8,749,752 11,811,303

Operating Income

Japan

North America

Others

(¥ Billion)

(Millions of yen)

For the fiscal year 2018 2019 2020 2021 2022
Japan 319,613 321,441 266,096 227,174 235,110
North America 90,411 101,777 99,582 159,507 287,265
Others 1,562 1,199 805 1,029 (1,355)
Eliminations 9 (152) (154) (58) (14,499)
Total 411,596 424,266 366,329 387,653 506,521

(Note) "Others" consists of the business results in China, etc.