Seven And I Sogo Seibu Strike: Seven & i Holdings, the world’s largest convenience store chain, will sell its Sogo & Seibu’s department store division on September 1. This will revolutionize Japanese sales. Seven & i Holdings has the most convenience stores worldwide. According to a Wednesday Nikkei business daily story, unionized workers have firmly supported this critical decision. The largest Seibu shopping center is where these workers will strike.
A labor strike at a famous Japanese department store will cease work for the first time in almost sixty years on Thursday if all goes well. This will be a historic moment. This has never happened in a country with few accidents.
Seven & i Holdings and Fortress Investment Group agreed to sell Sogo and Seibu informally last year. This convoluted past is related to what transpired, which was unprecedented. The deal was agreed to early on, but trade organizations still dislike it. The rebels, who are uniting, informed management of their strike plans earlier in the week.
But Fortress Investment Group wanted to buy Sogo & Seibu for 250 billion yen, or $1.71 billion in the US. The projected labor unrest and workers’ continual pushback may require changing this financial balance. The Nikkei reports that Fortress has dropped their bid by 30 billion yen to compete with other bidders.
Also Read: Seven And i Holdings Labor Union Threatens Rare Strike Over Sogo & Seibu Sale
First off, this is no ordinary business. Japanese business history is famous for Sogo & Seibu. This massive store sells luxury garments and home products. Its probable sale would transform Japan’s retail business mindset.
Second, Seven & I Holdings is a large fish in a big retail sector. This international firm may boast about its various assets because it owns 7-Eleven, the world’s largest convenience store network. The company’s departure from Sogo and Seibu may be part of a new plan to focus on its most profitable and scalable industries or it may imply fewer business overall.
The deal is taking longer than planned. This could indicate deeper economic issues, such as a labor-capital conflict in a country famed for its business loyalty and lifelong jobs. If this strike continues, the old social compact will be broken. It will also reveal that global capitalism’s ups and downs worry employees.
Fortress Investment Group decided a big acquisition price reduction was needed. This highlights how difficult it is to complete a large transaction, especially in a terrible environment. The recent financial reappraisal of Fortress illustrates both the actual issues and the retail industry’s instability. This ambiguity is likely exacerbated by the inability to predict worker behavior in various settings.
September 1 is nearing, and many stories deserve our attention. Would Seven & i Holdings be able to split its departmental wing without a PR disaster that would sink the company? After the property’s price dropped, will Fortress Investment Group buy it or reconsider? Most worrying is whether organized workers will strike. It would be Japan’s greatest strike if they do.
Our Reader’s Queries
Is Seibu under Sogo?
Sogo & Seibu, the Japanese retail giant, has undergone a restructuring process under its new parent company, Fortress Investment Group, based in the United States. The company had been facing net losses for four consecutive fiscal years until February 2023, during its ownership by Seven & i Holdings. However, with the new ownership, the company is expected to turn its fortunes around and emerge as a profitable entity.
What is the Japanese strike overproduction?
In Japan, there’s a unique phenomenon that emerged as a measure of union pressure. It’s called “karoshi,” and it involves workers devoting more effort and dedication to their tasks than normal. This leads to overproduction that the industry owners can’t distribute on the market, causing serious economic disruption.
How do Japanese workers strike?
In preparation for their bargaining demands, workers organize a pre-planned strike with management that won’t significantly impact production. They sport vibrant headbands and brandish signs while parading around the worksite. This ceremonial strike serves as a demonstration of the workers’ collective strength and support for their demands.