Japanese retail giant Seven & i Holdings Co has shut down all eight of its convenience stores in Israel due to heightened tensions in the Middle East, which pose risks for continued operations, according to a source familiar with the situation.
The company is the first known Japanese business to implement such extensive store closures or pull out of Israel following the escalation of the Israel-Hamas conflict that began in October last year, as reported by credit research firm Teikoku Databank Ltd.
In January 2022, Seven & i inaugurated its first 7-Eleven store in Tel Aviv through a partnership with a US group company, with ambitions to expand across Israel over the next five to six years.
The stores offered “Slurpee” frozen drinks, a hit in the American franchise, alongside kosher food options.
Up until their closure at the end of July, Seven & i was the sole major Japanese convenience store chain operating in Israel. All Japanese staff have since departed from the country.
As of late August this year, Seven & i managed about 84,000 stores in 19 countries, including China, South Korea, and the United States, and launched its first outlet in Laos in September of the previous year.
By 2030, Seven & i plans to grow its network to 100,000 stores in 30 countries and regions, with a focus on expanding in Europe, South America, the Middle East, and Africa.
According to Teikoku Databank, there were 92 Japanese companies operating in Israel as of October last year, with at least 40% engaged in manufacturing.
A representative from the research company noted that while there were a few smaller-scale withdrawals by firms from Israel as tensions in the Middle East increased, these companies had been facing challenges even before the conflict erupted.
The conflict in Gaza was ignited by a sudden attack on Israel by the Palestinian militant group Hamas on October 7, 2023, leading to escalated confrontations between Israel and its regional adversary Iran and their respective allied groups throughout the Middle East.
