business

Seven & i to acquire U.S. convenience store Speedway for $21 billion

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Is there some reason why convenience stores and gas stations in Japan don't hook up like they do in the US? It is my understanding that most gas stations don't make much of a profit on the gas, so much as with the in store sales. I may be wrong. Is it against the law here in Japan? Seems like a no-brainer to me, so there must be a reason they don't do it here. Anyone know?

0 ( +0 / -0 )

Elliot Management was the one who is behind the pressure for Marathon Petroleum Corp to sell off its convenience store business. Many people in the USA criticized the Marathon and Elliot of being short-sighted for selling the retail business. However, I see the opposite.

Both petrol retailing and oil refining are declining industries with a definite end date around 2050s. This means a 50% shrinkage by 2035 and a 25% shrinkage by 2027. Not to mention Japanese retail industry is already oversaturated, while Japanese presence in Southeast Asia and China is also being outcompeted by local players.

With the rise of e-commerce, traditional retailing is slowly becoming obsolete in the West. Amazon, Walmart, eBay, Target and many others are looking for the new way of less relying on the physical market. Not to mention that Amazon recently became the number one ecommerce site in Japan, Rakuten may have lost its dominance in Japan to the American firm. For Seven&i holdings, I feel this investment may be awful since they announced the 73% net decline in profits. I don't think this can be solely blamed on the Covid-19 because the firm itself overextended itself and had to absorb massive losses. Convenience store business is an ultra-competitive one in the USA, and it will be difficult for any foreign firm getting a strong foothold in the USA without some serious price cutting competitions.

Additionally, 7-11

5 ( +5 / -0 )

I suggest anyone this article to google Bucky's and Texas.

Most people on this site have no idea about Bucky's in Texas.

Imagine a gas station with a convenience store and Walmart had a baby!

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