The potential sale of 7-Eleven, Australia’s largest convenience and fuel retailers, is expected to be a significant event for the Australian business landscape. The Withers and Barlow families, who have owned the business since its inception in 1977, could reap over $2bn from the sale. The brand’s Japanese global owner, Seven & I Holdings, is expected to join the bidding for the business, which has experienced remarkable growth over the years.
Despite a wages scandal in 2015, the company has emerged stronger than ever, with over 750 stores across Victoria, New South Wales, ACT, Queensland and Western Australia, making over $4.5bn in annual sales and pre-tax profits of at least $200m. The business is also the largest convenience retailer on the eastern seaboard of Australia, boasting a market share of around 38.5%.
The Withers and Barlow families have appointed Azure Capital to manage the sales process, which is expected to take several months and attract interest from global private equity firms. The potential sale comes after the owners decided it was the right time to review options for the business and set it up for future growth and success.
Despite the challenges of the past, the company is performing well under highly credentialed management, with an exciting outlook for growth. 7-Eleven chief executive Angus McKay has stated that the business has recovered from disruptions caused by COVID-19 lockdowns and that its cheaper prices for coffee and food have made it attractive to consumers as cost of living pressures increase.
With a strong platform in place, Chairman of 7-Eleven Holdings Michael Smith stated that the shareholders have decided that the time is right for new ownership of the business to oversee the next phase of growth and development. The business is well-known for products such as slurpees and $2 coffees, and has a compelling strategy for growth across convenient food, the continued transformation of their total merchandise offer, digital and format innovation, and new stores.
In summary, the sale of 7-Eleven is expected to be a significant event for the Australian business landscape, with potential buyers vying for a business that has emerged stronger than ever after a challenging past. The future looks bright for the company, with exciting prospects for growth and development under new ownership.
For the latest retailer news and information, check out the ServoPro website or to speak to us on how we can help your business contact us.