In the Domestic convenience store operations segment, revenues amounted to ¥467,322 million (101.0% YoY), and operating income was ¥109,899 million (90.2% YoY).
　To achieve steady growth amidst increasing uncertainty in the business environment, SEVEN-ELEVEN JAPAN CO., LTD. (“SEJ”) has advanced the following key initiatives. For customer experience enhancement, SEJ has been elevating its appeal by rolling out Freshly Prepared Food, centered around SEVEN CAFÉ Bakery and SEVEN CAFÉ Tea under the "Live-Meal" brand. In category strategy, SEJ has been strengthening its product proposals, tailored to customers’ diversifying lifestyles. To strengthen its earnings structure, SEJ has been executing structural transformations across procurement, manufacturing, and logistics in order to optimize its value chain, as well as in its cost structure mainly through reviewing operating processes. Moreover, SEJ will further drive momentum and strive for sustainable growth, through accelerating digital initiatives such as 7NOW and mobile ordering as well as co-creation marketing.
　In the first half, these initiatives proved effective, leading to higher average spending per customer and same store sales growth, with the gross profit margin remaining at the same level as the same period last year. However, SG&A expenses increased due to upfront investments for introducing in-store cooking equipment and next-generation store systems, coupled with rising prices and other factors, resulting in operating income of ¥110,221 million (90.7% YoY). Additionally, total store sales, representing the combined sales of corporate and franchised stores, amounted to ¥2,810,379 million (101.6% YoY).
　During the three months of the second quarter, same store sales increased year over year, whereas the gross profit margin declined due to sluggish sales of soft drinks and other items. SG&A expenses increased year over year driven mainly by higher depreciation and amortization resulting from the rollout of in-store cooking equipment and next-generation store systems. As a result, operating income totaled ¥57,794 million (86.3% YoY).

　In the Overseas convenience store operations segment, revenues amounted to ¥4,966,613 million (117.7% YoY), and operating income was ¥150,422 million (187.7% YoY).
　In North America, a budget-conscious mindset toward food and daily necessities continued to be observed, particularly among low-income earners, largely driven by growing concerns over inflation. Under these circumstances, 7-Eleven, Inc. (“SEI”) has undertaken the following initiatives. For customer experience enhancement, SEI has been modernizing its store network by expanding proprietary products through offering high-quality fresh food and beverages, as well as by accelerating corporate-to-franchise conversion and remodeling existing stores. To strengthen its earnings structure, SEI has been optimizing its value chain by redesigning it for greater cost competitiveness, while implementing rigorous cost management. Furthermore, SEI aims to achieve autonomous growth by expanding 7NOW, which continues to serve as a core driver of growth.
　In the first half, U.S. same store merchandise sales on a U.S. dollar basis were higher than in the same period last year. In the fuel business, revenue surpassed that of the corresponding quarter of the previous year due to the volatility of market conditions. Gross profit margin improved year over year, driven by the expansion of proprietary products, despite the impact of soaring raw material prices mainly caused by inflation. However, SG&A expenses increased year over year. Operating income (before amortization of goodwill) was ¥209,064 million (155.5% YoY). Total store sales, comprising sales of both corporate and franchised stores, were ¥5,543,152 million (115.8% YoY).
　During the second quarter, the average spending per customer exceeded that of the previous year driven mainly by promotion optimization and value offering initiatives. However, U.S. same store sales slightly decreased due to lower customer traffic, driven largely by ongoing headwinds in the external environment such as persistently high fuel prices. Meanwhile, gross profit margin improved year over year, driven by measures such as the optimization of pricing and promotions, as well as the reduction of inventory write-off and shrinkage. As a result, operating income totaled ¥121,021 million (124.8% YoY).
　7-Eleven International LLC has been strengthening support for its existing markets and transitioning its business to a “food-focused convenience store” model tailored to the characteristics of each market. Operating income (before amortization of goodwill) for the first half was ¥10,792 million (103.5% YoY). As part of this effort, 7-Eleven Australia (Australia) has been driving initiatives to strengthen fresh food development, particularly by enhancing Japan-related offerings, running related campaigns, and broadening its assortment. As a result, same store sales in Australia increased year over year. In addition, revenues from its fuel business exceeded that of the same quarter last year, supported by the volatility of market conditions.