Seven-Eleven Japan Co. said Thursday the convenience store operator will replace its president after its longtime 24-hour operating policy caused controversy recently amid a labor crunch that is straining the retail industry.

"When it comes to operating hours, I'd like to consider a flexible response that would suit each outlet," given that the business environment for every store varies greatly, vice president Fumihiko Nagamatsu, who will be promoted to the top post, effective Monday, told a news conference in Tokyo.

The revamp of Seven-Eleven's management could lead to a major turning point for the country's convenience store industry, which has been increasingly relying on foreign part-time workers to fill shifts as many franchise owners have been struggling to secure labor amid Japan's graying population.