By Arata Hashizume / Yomiuri Shimbun Staff Writer

Tomohiro Akutsu, who was appointed president of Seven-Eleven Japan Co. in May, expressed his intention to develop products with "novelty" in mind, in a recent interview with The Yomiuri Shimbun and other media outlets.

The following is taken from the interview.

Product composition

Question: What challenges does Seven-Eleven face?

Tomohiro Akutsu: Our reputation is poor among our customers. There are issues with the products, the lineup and the fun factor. On the other hand, our products have a reputation for being delicious. But we have not been able to step outside the box and introduce new, bold products.

Question: What strengths does Seven-Eleven have that other companies don't have?

Akutsu: That would be our ability to make delicious food. However, we're constantly revamping the same products. Our products, including the lineup, are slightly out of step with what customers are looking for these days.

To begin with, we will focus on selling goods that are delivered daily, such as onigiri rice balls and sandwiches. It's crucial to create an environment in which we can generate profits from products that are delivered daily and then develop new products after that. That's the most important kind of product for us to differentiate ourselves from other convenience stores.

Question: Seven-Eleven is perceived as relatively expensive compared to other convenience stores. What do you think about that?

Akutsu: We were slow to react to inflation. Even now, we've been unable to dispel the impression that our products are expensive. However, in a business model in which gross profit margins are shared with franchisees, lowering prices to attract customers is not an option; what's important is creating products that customers perceive as reasonably priced.

With the introduction of new cooking machines, each store will be able to bake food. We also plan to sell chicken for Christmas. These moves are highly compatible with our "7NOW" product delivery service and will lead to new value. We want to increase the number of products that support home dining.

Internal reforms

Question: What are you working on in terms of reforms?

Akutsu: We've changed the product development process. Previously, executives only tasted new products just before they were completed, but now they taste them at the prototype and intermediate stages. The executives are mostly men over the age of 50, so there's a slight discrepancy between their evaluation of a product and that of the public. We've made it so the board members can give their opinions, but the product department makes the final decision.

We're going to change the company culture and create an atmosphere that encourages people to take on new challenges, which is essential for generating ideas that will make our products seem interesting and affordable to customers. We're also going to review our marketing strategy, including the ads we run on TV.

Store reforms

Question: Reforms on the front lines, including at stores, are also necessary, aren't they?

Akutsu: Our top-down management style has been the company's strength until now, but it also has adverse effects, such as making it impossible for stores to be flexible in their actions. We are looking for independent and proactive people who can think and act on their own.

Each store faces different challenges: Some sell a lot of rice balls, while others have trouble selling fried foods. It's important for the person in charge and the store owner to think for themselves and take on the challenge of reforming the store. Even if they fail at times, I want them to make errors and learn from them.

Question: Isn't it also necessary to create a system that will enable owners to earn profits?

Akutsu: A crucial theme is reducing personnel to decrease labor cost. One solution is the introduction of self-checkout systems. The lack of staff has resulted in reduced sales of fast foods, such as fried chicken and yakitori, and cigarettes. However, we resolved these issues by setting up a system in which one person manages two or three self-checkout machines. We hope to expand the system further in the future.

Acquisition

Question: Seven & i Holdings Co., the parent company, has received an acquisition offer from Alimentation Couche-Tarde Inc., a Canadian company in the same business. What are your thoughts on the issue?

Akutsu: I am not in a position to answer, but I believe the assumption is that we will continue to work within our current structure. Regardless of the acquisition proposal, we will continue to work closely with the holding company. There's a lot of work to be done as the president of an operating company, and it's important that I carry out that work.

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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.

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June 24, 2025 03:11 ET (07:11 GMT)

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