7-Eleven deserves more than shareholder supremacy

The convenience store chain's social value needs to be considered too.

- Gearoid Reidy

Two weeks from the first report of Alimentation Couche-Tard's bid to acquire Japan's Seven & i Holdings, the battle lines for public opinion are being drawn.

Reports that the target is seeking Japanese government protection from the bid, under the auspices of the country's Foreign Exchange and Foreign Trade Act, have had some asking if this is "Japan Inc" of yore. The talk already is that any rejection of the Canadian firm's bid would be a return to the sakoku era of closed-borders opposition to foreign involvement - and, conversely, that acceptance of the takeover attempt would underline Japan's recent transformation.

Let's not proceed to the checkout with that idea just yet. For one thing, Couche-Tard has yet to lay out anything about this deal, from a per-share offer to a demonstration of how it intends to manage 7-Eleven better than its current custodians. And though the suggestion that the chain is a critical piece of national infrastructure like nuclear plants might be opportunistic, 7-Eleven has more value than simply its worth to shareholders.

7-Eleven has become a vital local hub in Japanese communities, particularly in rural areas where the smaller independent stores of yesteryear can no longer afford to operate. The chain's nationwide reach and economy of scale make its tasty, nutritious food options available to otherwise isolated elderly people. When the konbini, as the stores are colloquially known, reopened weeks after the Noto earthquake that hit on New Year's Day in 2024, celebrations erupted among local communities.