Seven & I said to be in talks to take stake in Poland’s Zabka

Seven & I Holdings is in negotiations to invest several hundred billion yen to acquire a stake in Poland’s No. 1 convenience-store operator Zabka Group SA, people familiar with the matter said. 

The transaction, if completed, would allow the 7-Eleven operator to accelerate expansion in Europe where growth has lagged behind its main markets in the U.S. and Japan. The size of the stake is expected to be in the double-digits, according to the Nikkei, which first reported the news. 

Seven & I has been under pressure over its sluggish share price, which drew an unsolicited takeover bid from Canada’s Alimentation Couche-Tard in 2024. Although the Circle K owner abandoned its offer, the Japanese retailer streamlined its business and promised faster growth. With limited room to expand at home, it is accelerating overseas growth, with a goal of expanding its footprint to 30 countries and regions by 2030, from 19 now. 

Discussions are ongoing and the parties may still decide against proceeding with a deal, said the people, who asked not to be identified discussing private matters. 

A Seven & I spokesperson said the company was not the source of the information. Żabka declined to comment. 

Europe, in particular, is seen as a new pillar for Seven & I after Japan, the U.S. and Australia. Poland would become the Japanese firm’s fourth European market, following Sweden, Denmark and Norway. Żabka currently operates nearly 13,000 stores across Poland, with about a 11% share of the domestic grocery retail market.

Seven & I had traditionally relied on licensing arrangements, leaving management to local operators. Now, the company is betting that it can replicate what it has seen in Australia, where it made the local business a wholly owned subsidiary, dispatched executives and strengthened its food offerings.

Even so, Seven & I shares are down around 11% this year despite efforts to turn around its core convenience-store business in Japan and the U.S. The retailer is considering selling a stake to SoftBank and PayPay, people familiar with the negotiations have said, a move that would position the companies to capture more of consumers’ wallets and help fuel faster profit growth.

Building a business base in Europe could help offset weakness in the U.S., although 24-hour convenience-store operations remain less established. At the same time, gaining a meaningful foothold in such markets could help drive market expansion. The challenge will be whether Seven & I can bring the strengths of its Japanese model while adapting to local consumer habits and distribution networks.