Seven & I Holdings, the owner of 7-Eleven convenience stores, said it expects it will have to take a hard look at its supply chain and rein in costs as American consumers grapple with the impact of U.S. tariffs.
“My assumption is that we are going to be facing a somewhat more challenging retail environment,” incoming chief executive officer Stephen Dacus at the Japanese retail conglomerate told reporters. Tariffs imposed and in the works as U.S. President Donald Trump seeks to reshape global trade are expected to drive prices sharply higher – posing difficult challenges for retailers.
Mr. Dacus, an outside director who will take the helm next month, added that the biggest impact of U.S. tariffs on the company will be on consumer behaviour rather than directly on its suppliers.
Reluctantly dealing with a US$47-billion takeover bid from Laval, Que.-based Alimentation Couche-Tard, Seven & i has been on a push to boost corporate value. Delivering on that strategy largely hinges on improving its U.S. division of more than 12,000 convenience stores.
North American revenue accounts for 73 per cent of Seven & i’s overall sales.
Mr. Dacus, who previously headed the special committee charged with examining Couche-Tard’s takeover bid, declined to comment on the status of negotiations.
“My appointment as CEO had nothing to do with the takeover offer,” Mr. Dacus said. “We don’t talk about Couche-Tard among the management team because there’s nothing we can do about it,” adding that was the role of the special committee.
Seven & i’s shares were trading around 2,100 yen on Friday morning, well below Couche-Tard’s offer price of 2,700 yen per share, indicating investor skepticism that a deal will materialize.