Seven & I Holdings Co. shares fell sharply Friday after the company said it will close some supermarket stores and exit the apparel business.
The shares were recently 5.3% lower at 6,237 yen ($45.81) after Thursday’s 4.1% gain.
The company said after Thursday’s market close that it will close some Ito-Yokado superstores, projecting the number of the stores to fall to 93 at the end of February 2026 from 126 at the end of February this year. It said it will also exit the apparel business as part of its restructuring plan.
Before the announcement, Japan’s public broadcaster NHK reported that Seven & I was planning to significantly reduce the number of supermarket stores, fueling market speculation for big restructuring steps and leading to Thursday’s share-price gain.
Last year, San Francisco-based activist investor ValueAct Capital asked Seven & I’s board to focus on its convenience-store business and set up a committee to review strategic alternatives, including the potential sale of units.
Seven & I has said its superstore business is essential for the growth of its convenience stores in Japan, rebuffing calls from some shareholders to sell the less-profitable operations.