Segment Information

Last update: April 8, 2022

FY2022 Financial Results

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.

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 928,649 955,443 971,236 920,832 873,239
Overseas convenience store operations 1,981,533 2,821,053 2,739,833 2,191,383 5,194,327
Superstore operations 1,901,164 1,902,507 1,849,121 1,810,884 1,810,728
Department and Specialty Store Operations - - 912,060 684,660 712,282
Financial services 202,942 215,007 217,367 198,927 194,399
Others 23,533 23,720 25,202 22,011 20,340
Eliminations/Corporate (74,510) (74,093) (75,695) (66,277) (55,567)
Total 6,037,815 6,791,215 6,644,359 5,766,718 8,749,752

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 245,249 246,721 256,601 234,258 223,396
Overseas convenience store operations 79,078 92,266 102,001 98,097 159,866
Superstore operations 21,260 21,173 21,307 29,683 18,791
Department and Specialty Store Operations - - 8,279 (17,444) (8,153)
Financial services 49,713 52,874 53,610 48,077 37,549
Others 3,670 2,659 1,554 1,944 (115)
Eliminations/Corporate (13,120) (14,515) (16,296) (25,911) (43,681)
Total 391,657 411,596 424,266 366,329 387,653

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 1,127,614 1,147,777 1,224,157 1,252,296 1,182,328
Overseas convenience store operations 1,179,292 1,371,383 1,401,418 2,284,682 4,126,637
Superstore operations 969,037 945,406 959,853 963,545 972,803
Department and Specialty Store Operations - - - 566,491 531,990
Financial services 1,434,793 1,514,897 1,666,038 1,788,607 1,711,943
Others 156,221 159,168 160,882 156,651 36,070
Eliminations/Corporate 123,741 194,920 138,909 51,850 177,506
Total 5,494,630 5,795,065 5,996,887 6,946,832 8,739,279

(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 140,333 115,525 104,226 129,028 99,801
Overseas convenience store operations 94,285 288,221 134,684 145,170 178,435
Superstore operations 37,821 61,462 47,310 48,411 62,139
Department and Specialty Store Operations - - 22,398 26,160 15,090
Financial services 38,803 34,918 36,099 39,328 37,323
Others 3,723 2,931 2,798 1,760 2,323
Eliminations/Corporate 10,532 10,157 14,127 (11,771) 44,516
Total 347,374 539,328 360,909 377,299 439,630

(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 66,500 72,717 76,519 79,856 80,781
Overseas convenience store operations 69,582 76,141 77,204 81,299 127,193
Superstore operations 23,893 24,475 26,071 26,929 28,600
Department and Specialty Store Operations - - 14,335 14,598 14,460
Financial services 28,926 31,072 29,031 28,766 31,783
Others 2,257 2,267 2,447 2,269 877
Eliminations/Corporate 6,691 1,651 2,238 3,038 8,865
Total 213,167 221,133 226,475 235,504 292,561

Geographic Area Segments

Revenues from Operations

Japan

North America

Others

(¥ Billion)

(Millions of yen)

For the fiscal year 2018 2019 2020 2021 2022
Japan 3,907,835 3,812,200 3,745,475 3,435,146 3,468,840
North America 2,017,092 2,862,627 2,782,055 2,232,234 5,170,053
Others 113,992 117,555 118,118 100,707 112,500
Eliminations (1,104) (1,167) (1,289) (1,371) (1,642)
Total 6,037,815 6,791,215 6,644,359 5,766,718 8,749,752

Operating Income

Japan

North America

Others

(¥ Billion)

(Millions of yen)

For the fiscal year 2018 2019 2020 2021 2022
Japan 314,700 319,613 321,441 266,096 227,174
North America 75,626 90,411 101,777 99,582 159,507
Others 1,320 1,562 1,199 805 1,029
Eliminations 10 9 (152) (154) (58)
Total 391,657 411,596 424,266 366,329 387,653

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