Almost three months have passed since Alimentation Couche-Tard abandoned its ¥6.77 trillion ($44.4 billion) bid to acquire Seven & I Holdings, yet the stock remains 24% below the proposed price with few signs of reversing course.
The company is reshaping itself under a new chief executive by selling weaker assets, buying back ¥2 trillion worth of shares and betting on growth in Japan and the U.S. — but faces rising competition and pressure to prove its convenience-store model can deliver consistent profits.
Seven & I sits at a crossroads as it seeks to reassure investors it can thrive without a foreign takeover. Stephen Dacus, who took over five months ago, said in August the retailer is at a "turning point” and vowed to add more than 2,000 new stores to fuel growth. At the same time, the business faces headwinds from inflation biting into consumer spending in Japan and the U.S. and rising costs.
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