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Question Case Study Seven Eleven

In: Business and Management

Submitted By theoclinton
Words 4572
Pages 19
1 i CASE



Established in 1973, Seven-Eleven Japan set up its first store in Koto-ku, Tokyo, in May 1974. The company was first listed on the Tokyo Stock Exchange in October 1979.
In 2004 it was owned by the Ito-Yokado group, which also managed a chain of supermarkets in Japan and owned a majority share in Southland, the company managing SevenEleven in the United States. Seven-Eleven Japan realized a phenomenal growth between the years of 1985 and 2003.
During that period, the number of stores increased from
2,299 to 10,303; annual sales increased from 386 billion to
2,343 billion yen; and net income increased from 9 billion to
91.5 billion yen. Additionally, the company's return on equity (ROE) averaged around 14 percent between 2000 and 2004. In 2004, Seven-Eleven Japan represented Japan's largest retailer in terms of operating income and number of stores. Customer visits to Seven-Eleven outlets totaled 3.6 billion that year, averaging almost 30 visits to a SevenEleven annually for every person in Japan.

Both Ito-Yokado and Seven-Eleven Japan were founded by Masatoshi Ito. He started his retail empire after World .
War II, when he joined his mother and elder brother and began to work in a small clothing store in Tokyo. By 1960 he was in sole control, and the single store had grown into a $3 million company. After a trip to the United States in
1961, Ito became convinced that superstores were the

wave of the future. At that time, Japan was still dominated by Mom-and-Pop stores. Ito's chain of superstores in the Tokyo area was instantly popular and soon constituted the core of Ito-Yokado's retail operations.
In 1972, Ito first approached the Southland
Corporation about the possibility of opening Seven-Eleven convenience stores in Japan. After rejecting his initial...

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