Seven & i intends to expand its supermarket operations in China. The company told just-food that it will sharply increase the number of stores it operates on the Chinese mainland from the 60 currently established.

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The Japan-based company said that it plans to open multiple stores in Beijing and five stores in Chengdu by 2010.


“Our new subsidiary Seven-Eleven China Co., will be opening new stores in Shanghai at first and then extending new openings nationwide,” a spokeswoman told just-food today (1 May).


The Seven-Eleven chain is planning 12 stores in Beijing at least, the company added.


The plans come after last month’s announcement that the Japanese group planned to found a new subsidiary, Seven-Eleven China Co., to take control of its Chinese interests.

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In January 2004 Seven & i established joint venture Seven-Eleven Beijing. Originally, the group planned to have opened 350 stores by the end of 2008, but this figure is likely to be missed.


Seven-Eleven attributes the slow progress of its expansion in China to the limitations placed on its key penetration model – the franchise.


Foreign companies were forbidden to use the franchise model in China until February 2005, and they still require certification.


The spokeswoman said Seven & i was now actively developing franchises for its convenience stores, which until recently have been spreading under a direct ownership system.


Despite intense competition from hundreds of home grown convenience stores the 7-Eleven stores have performed well in China, with income growing from JPY879m (US$8.46m) at the end fiscal 2007 to JPY2.23bn yen for the fiscal year ended in 2008.