Shuhei Iwasa’s Post

There are over 150,000 stores in the United States with annual foot traffic in the billions. Convenience retail is one of the most valuable retail networks in the world. They sell high margin, everyday items in typically small-format stores that have a quick turnaround time. However, there's a lot to be desired about US convenience retail. They frequently have issues with crime and are (at best) fairly undesirable locations. They serve a functional purpose - but they could be so much more. If you look at how brands like Lawson Convenience, 7-Eleven and Family Mart operate in Japan, they're so much better than what we associate convenience retail with today. In the US, the lack of innovation in convenience retail is dramatically hindering the sector. There is so much potential in this vertical (especially when using Japan as a model) but it will require the corporate owners to step up and leverage data, AI and product innovation to transform the US market to become even better for consumers. Is Circle K the right owner for 7-Eleven? It can't be run much worse. If antitrust fear that this may lead to duopolising the industry then they're putting unfounded fears of consolidation ahead of the huge consumer benefits a well run, well capitalised, forward thinking organization can bring to this industry.

To be honest, if all 7-Eleven stores were like those in Japan in terms of merchandise and service offerings, the number can be far greater. Having been to Japan a few times, their convenience stores are truly impressive. Those who have been to Japan will know what I mean. So, would you think this is an ambitious goal, or too ambitious in the current economic climate? #retail #7eleven #physicalretailisnotdead

Tims China reported strong Q1 2024 results today, - Resilient Total Revenues Increased 3.1% Year over Year for the First Quarter 2024 - System Sales Increased 7.1% Year-over-Year for the First Quarter 2024 - Continuous Margin Improvement with Seven Consecutive Positive Quarterly Adjusted Store EBITDA - 20.3 Million Registered Loyalty Club Members at Quarter-End, Representing 63.6% Year-over-Year Growth Mr. Yongchen Lu, CEO & Director of Tims China, commented,“Continuous product innovation remains a cornerstone of our strategic vision; we launched 14 new beverages and 18 new food products during the quarter. We just celebrated the meaningful milestones of our 5th anniversary in China as well as the 60th anniversary of the “Tim Hortons” brand in February. To commemorate both remarkable milestones and double celebrations, Tims China launched its Chinese version of "Double Double" latte series. Our collaborations with Tangle Angel and Dove Chocolate have also achieved significant success during the quarter.” See our full earnings release here:  https://lnkd.in/gv8_z-gC #TimsChina #RobustGrowth #Earnings #Q1

What's the secret behind 99SM's superior 5% PAT margins? 99 Speed Mart's 2651 stores is Malaysia's largest mini-market player and a leading groceries retailer with market share of 40.1 and 11.6% respectively. IPO prospectus: 3473571.pdf (https://lnkd.in/dE5wmytR) I compiled a random list below. The superior net margin of Singapore's Sheng Siong I would argue, is attributable to NTUC's Fairprice and Cold Storage setting high prices for everyday goods. Sheng Siong has no incentive lowering prices further, when they are already cheaper that of the No 1 and 2 player. PAT margin
 Singapore's Sheng Siong (9.8%) ************ Malaysia's 99 Speed Mart (5%) ******* Avenue Supermart operates India's Dmart (4.9%) Japan's Pan Pacific International operates Do Don ki (4.5%) US' Dollar General (4.2%) Sumber Alfaria operates Indonesia's Alfamart (3.2%) Walmart in US (2.5%) CP All operates Thailand's 7-Elevens (2.5%) UK's Tesco Plc (2.5%) Australia's Coles Group (2.5%) Seven & I operates 7-Elevens in Japan (2%) Carrefour (1%) Malaysia's 7-Eleven Malaysia (last yr loss making, or 1.3% to 2.1% during Covid)) Couche-Tard's Circle K (last yr loss making, or 1.3% to 2.1% during Covid)) US' Dollar Tree (last yr loss making, or 5.2% to 5.7% during Covid)) P.S. This is a strong showing after Malaysia's mega successful Mr DIY IPO, whose revenue and net income doubled since 2019, and enjoy SUPERIOR financial metrics (DIY's net margin 12.8%, ROE 35.2%, ROIC 19.3%) compared to US' Home Depot (net margin 9.9%, ROIC 36.9%) and Indonesia's Ace Hardware (net margin 10%, ROE, 12.6%, ROIC 11.8%). Any of the above sound too good to be true? https://lnkd.in/dM7S7QvC

Walmart sells $3.74 billion JD.com stake to focus on its own China operations - Times of India HONG KONG: Walmart, the biggest shareholder of Chinese e-commerce firm JD.com , has sold its entire stake, according to a person familiar with the matter, exiting an eight-year investment to focus on its own operations in China. A placement of the Walmart shares was fully subscribed, the person said, and at the top end of the offered range would be worth $3.74 billion. The US retail giant plans to double down on its warehouse business Sam's Club in China after the stake sale that underscores ... Read more here: https://lnkd.in/d255krVY . . Like 💝 Comment below ⏬ Share ✅ For More Such Updates Follow Us @qnewshub @qnewscrunch . . #qnewshub #qnewscrunch #Business

Any visitor to Japan notices right away that 7-Eleven stores are a core part of everyday life there. A far more attractive and profitable retailer than its legacy counterpart in the U.S. , it sets the standard for what a local convenience store should be. The parent Seven & i Holdings also owns other familiar American brands such as Denny's and Tower Records, as well as many other businesses under its conglomerate umbrella. If the parent were to sell or spin-off its non-7-Eleven businesses, it would highlight the value of its core 7-Eleven business and shed its conglomerate discount. The current pending acquisition offer by Canada's Couche-Tard may serve as a catalyst for such a scenario.

What is fueling Dutch Bros' recent sales and profit surge? Dutch Bros experienced a remarkable upswing in their financial performance last quarter, marked by a notable 10% increase in same-store sales. This growth can be attributed to the introduction of enticing offerings such as boba and protein coffee, coupled with heightened customer awareness that bolstered foot traffic to their outlets. CEO Christine Barone attributed this success to improved foot traffic throughout the quarter, notwithstanding the weather-related challenges experienced in January across various West Coast markets. Notably, the Dutch Rewards loyalty program played a pivotal role, accounting for two-thirds of all transactions during this period. The surge in sales also translated into robust profitability, with net income reaching $16.2 million, a significant turnaround from the $9.4 million loss reported in the same period last year. Adjusted EBITDA witnessed an impressive 120% increase, totaling $52.5 million. Moreover, the gross profit margin at the chain's stores saw a noteworthy uptick, reaching 21.9% of sales, marking a 520 basis points increase compared to the preceding year. This stellar performance resonated positively with investors, as evidenced by an 8% surge in the company's shares during after-hours trading on Tuesday. Looking ahead, Dutch Bros has raised its revenue and profitability expectations for the period, underscoring its confidence in sustaining this growth trajectory. However, the projections for same-store sales, expected to remain in the low single digits, reflect the anticipated challenges of tougher comparisons later in the year. Despite headwinds faced by some other restaurant brands, notably its competitor Starbucks, Dutch Bros' resilience and strategic initiatives have evidently positioned it as a standout performer in the industry. 👉 Click link for details: https://lnkd.in/gtPVsYRV #NNN #retail #realestate #investment #investing #commercialrealestate #property #passiveincome #cre #investor #realestateinvesting #commercialproperty #netlease #retailrealestate #dutchbros #coffee

A proposed deal by the owner of Circle K to purchase 7-Eleven's Japanese parent company would create a new giant in the convenience store space in the U.S. and abroad, though its unclear whether stakeholders and Japanese regulators will let it transpire. #conveniencestore In this piece by Mitchell Parton, we speak to Frank Beard of Rovertown, Michael Causton of JapanConsuming, and Mike Allen.

7-Eleven store chain parent Seven & i Holdings has appointed Nomura to advise on $38.5 billion buyout offer by Canada convenience store giant Alimentation Couche-Tard ($56 billion market value).   Earlier in September 2024, Seven & i Holdings rejected Alimentation Couche-Tard friendly proposal (19/8/24) to buy 7-Eleven store chain parent Seven & i Holdings.  Alimentation Couche-Tard continues to seek discussion on buyout offer.  Read - https://lnkd.in/gQDjiyKZ follow Caproasia | Driving the future of Asia 7-Eleven store chain parent Seven & i Holdings has appointed Nomura to advise on $38.5 billion buyout offer by Canada convenience store giant Alimentation Couche-Tard ($56 billion market value).   Earlier in September 2024, Seven & i Holdings rejected Alimentation Couche-Tard friendly proposal (19/8/24) to buy 7-Eleven store chain parent Seven & i Holdings.  Alimentation Couche-Tard continues to seek discussion on buyout offer.  On 19th August 2024, Alimentation Couche-Tard had sent a friendly proposal (19/8/24) to buy 7-Eleven store chain $31 billion parent Seven & i Holdings. Couche-Tard billionaire founders Alain Bouchard fortune at $7.7 billion, and Jacques D’Amours fortune at $3.7 billion.   Canada convenience store giant Alimentation Couche-Tard ($56 billion market value) requires Japan government regulatory approval to buy 7-Eleven store chain $31 billion parent Seven & i Holdings.  Seven & i Holdings (6/9/24): “After a thorough review and discussion of your proposal, the 7&i Board has unanimously concluded, based on the unanimous recommendation of the Special Committee, that the proposal is not in the best interest of 7&i shareholders and other stakeholders. We are open to engaging in sincere discussions should you put forth a proposal that fully recognizes our standalone intrinsic value and addresses our concerns regarding certainty of closing in the current regulatory environment. However, we do not believe, for several critical reasons, that the proposal you have put forward provides a basis for us to engage in substantive discussions regarding a potential transaction.  undervalues our standalone path and the additional actionable avenues we see to realize and unlock shareholder value in the near- to medium-term. The 7&i business is a unique asset and strategically positioned within the global convenience store sector. The Board is confident that it can realize and unlock shareholder value through a number of strategic actions, including but not limited to our U.S. business, that we are actively pursuing … …