Business 36: Seven & I Holdings to cut 3,000 jobs and close 1,000 7-Eleven convenience stores across Japan

Food Business Africa | Japanese retailer Seven & I unveils major  restructuring plan with 3000 jobs at stake

Warm up

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  1. [responsivevoice voice = “US English Female” buttontext = “”]What industry do you work in and what is your role? [/responsivevoice]
  2. [responsivevoice voice = “US English Female” buttontext = “”]What are your responses in your role / position? [/responsivevoice]
  3. [responsivevoice voice = “US English Female” buttontext = “”]Can you describe to the function of your workplace / company? [/responsivevoice]
  4. [responsivevoice voice = “US English Female” buttontext = “”]How many departments, how many offices. National or International? [/responsivevoice]
  5. [responsivevoice voice = “US English Female” buttontext = “”]What is the Minimum requirements for employment ie Education or Experience? [/responsivevoice]
  6. [responsivevoice voice = “US English Female” buttontext = “”]How many opportunities are there to ‘move up the ladder’? [/responsivevoice]
  7. [responsivevoice voice = “US English Female” buttontext = “”]What is the process for changing job roles ie Interview? Test? [/responsivevoice]

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[responsivevoice voice = “US English Female” buttontext = “”]General discussion about your workweek: [/responsivevoice]

  1. [responsivevoice voice = “US English Female” buttontext = “”]Current projects? Deadlines? Opportunities? [/responsivevoice]
  2. [responsivevoice voice = “US English Female” buttontext = “”]Anything of interest happening? [/responsivevoice]

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Article

  1. [responsivevoice voice = “US English Female” buttontext = “”]The number of domestic convenience stores operated by Seven-Eleven Japan Co. dropped by 24 in September from the previous month to 20,993, marking the first fall in five years, company officials said Friday.The figures came a day after its parent, Seven & I Holdings Co., said it would close 1,000 unprofitable outlets and eliminate 3,000 jobs from its other units as the retailer continues structural reforms and cuts back on 24-hour operations.[/responsivevoice]
  2. [responsivevoice voice = “US English Female” buttontext = “”]The fall in the number of stores apparently reflects slowing growth in the industry, with the domestic convenience store market having become saturated.But Seven-Eleven Japan said the drop would only be temporary. The company has slowed down the pace of store openings amid criticism it was forcing around-the-clock operations on franchisees despite an acute labor shortage.[/responsivevoice]
  3. [responsivevoice voice = “US English Female” buttontext = “”]On Thursday, the convenience chain said it would implement new policies for its franchisees, such as reducing monthly fees. Additionally, it will close five Seibu and Sogo department stores, and is considering shuttering 33 Ito-Yokado general-merchandise shops.[/responsivevoice]
  4. [responsivevoice voice = “US English Female” buttontext = “”]The companys 7-Eleven Japan business will take a ¥10 billion ($93 million) charge due to the new incentives for the franchisees, Chief Executive Officer Ryuichi Isaka said in Tokyo while announcing the companys second-quarter results. Seven & I said a new midterm plan would be announced next April.[/responsivevoice]
  5. [responsivevoice voice = “US English Female” buttontext = “”]Seven & I, the largest convenience store operator in Japan, has been pressured in a saturated domestic market where growth has been limited to taking share from competitors. Its also been under fire in the past year for enforcing 24-hour operations on its franchisees amid a labor crunch in Japan. Now it is testing stores with reduced hours.[/responsivevoice]
  6. [responsivevoice voice = “US English Female” buttontext = “”]Staff reductions will apply to Ito-Yokado, where 1,700 positions will be cut, and Sogo and Seibu, which will see 1,300 job losses. Those stores have dragged on the companys more profitable convenience store operation. Although known for its 7-Elevens that dot Japan and the globe, the companys other operations span multiple business areas, from Dennys Japan restaurants to its own bank.[/responsivevoice]
  7. [responsivevoice voice = “US English Female” buttontext = “”]JP Morgan analyst Dairo Murata said the news will likely be taken negatively, as the 7-Eleven charge was a surprise. But in the long run, it could bear some fruit. Theyll have their new midterm plan announcement next April, so this structural reform is probably an effort to be able to grow earnings for that period,” he said.[/responsivevoice]
  8. [responsivevoice voice = “US English Female” buttontext = “”]While Seven & I said it was examining the impact of the measures on earnings, it kept its operating profit forecast for the current fiscal year the same, at ¥420 billion, in line with estimates. The company said it will promptly make an announcement should there be any impact on financial results.[/responsivevoice]
  9. [responsivevoice voice = “US English Female” buttontext = “”]In recent months, Seven & I has also been embroiled in negative publicity after its digital payment system 7 Pay was hacked and money from customers taken within days of its launch in July. The company shut down the service last month. The company said Thursday that Isaka and two other executives would take a salary reduction for three months. Additionally, the executive in charge of the payment system will retire.[/responsivevoice]

Discussion

1.[responsivevoice voice = “US English Female” buttontext = “”]Is the closing of 1,000 Seven-Eleven stores surprising to you? Why or why not?[/responsivevoice]

2.[responsivevoice voice = “US English Female” buttontext = “”]How do you feel about Seven & I enforcing 24-hour operations on its convenience stores? Is it too harsh, or is it an essential part of convenience store service?[/responsivevoice]

3.[responsivevoice voice = “US English Female” buttontext = “”]The article mentions that the convenience store market in Japan is saturated, so the only way to grow is by taking market share from competitors. Why do you think the convenience store market has become saturated? Which convenience store do you think will perform the best in the near future[/responsivevoice]

4.[responsivevoice voice = “US English Female” buttontext = “”]Seven-Eleven Japan said the recent drop in the number of stores and employees is only temporary. How long do you think the decline will last for and why?[/responsivevoice]

 

Keywords

  1. [responsivevoice voice = “US English Female” buttontext = “”]Saturated =holding as much water or moisture as can be absorbed; thoroughly soaked[/responsivevoice]
  2. [responsivevoice voice = “US English Female” buttontext = “”]Amidsurrounded by; in the middle of.[/responsivevoice]
  3. [responsivevoice voice = “US English Female” buttontext = “”]Around-the-clock = all day and all night[/responsivevoice]
  4. [responsivevoice voice = “US English Female” buttontext = “”]Acute = (of an angle) less than 90[/responsivevoice]
  5. [responsivevoice voice = “US English Female” buttontext = “”]Incentives = a thing that motivates or encourages someone to do something[/responsivevoice]
  6. [responsivevoice voice = “US English Female” buttontext = “”]Under fire =to be severely criticized
    for something you have doneused in news reports[/responsivevoice]
  7. [responsivevoice voice = “US English Female” buttontext = “”]Crunch = a noise like the sound of something being crushed, a difficult situation caused bylack of somethingespecially money or time
     [/responsivevoice]