JAPAN: Seven & I Unveils New Deal Up With H2O Retailing

Seven & i Holdings has entered in a new partnership with local group H2O Retailing, as part of the former’s attempts to revive its struggling department store operations.

The tie-up will see Seven & I sell three department stores (two Sogo and one Seibu) to H20, which operates the Hankyu and Hanshin department stores.  Additionally, Seven & I will pick up a 3% stake in H2 Retailing (worth 5.7bn yen), while H20 will acquire shares in Seven & I for the same amount (equivalent to around 0.1% stake).

Seven & I said the move allows it to focus on stores in Tokyo and the surrounding area, while H20 will look to revive the fortunes of the stores given its strong local presence.