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Seven Eleven Japan Today. 3/11/09 Mike Gordon Andrew Vickrey. Seven Eleven Japan Today: Annually increased sales 3.2% (¥2.05 trillion to ¥2.57 trillion from 2000-2008) Seven & I Holdings created in 2005. Private for $1billion in 2005
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Seven Eleven Japan Today 3/11/09 Mike Gordon Andrew Vickrey
Seven Eleven Japan Today: • Annually increased sales 3.2% • (¥2.05 trillion to ¥2.57 trillion from 2000-2008) • Seven & I Holdings created in 2005 Private for $1billion in 2005 - eliminate need to sustain short term profitability for US operations - focus on uniform profitability Ito-Yokado superstores
Strengths • Successful Business Conversion Program • Trusted “Green” Eco-Friendly • Biodiesel • Total Information Systems • Sixth Generation • Industry Leading Distribution & Consumer Analytics • Methods of Payment • Nanaco
Weaknesses • Millennium Acquisition • Downgrade from S&P • Exports • Costly Capital • Japan’s Economy
Opportunities • Large All-Purpose Stores • Ito-Yokado • Seven Premium • Business Model into North America
Threats • Lawson • Franchisee Contractual Agreement • Wasted Food • Global Recession & Consumer Trends
Strategic Recommendation • Discount Integrated Retailer • Lower Costs • Super Stores in China • Convenience Stores in North America
Investment Recommendation • Cost-Cutting mode in near future • Net decrease of 200 stores • Strong, Creditworthy Firm that can weather storm • Solid Profit HOLD