[Japanese Side] The Father of Seven-Eleven, Ito Masatoshi, Passes Away

Founder of Ito-Yokado and Seven-Eleven
Famous for Frugal and Humble Character... Memorials Continue

Editor's NoteJapan, a country close yet distant. Many have heard the name but wonder who these figures are. An international correspondent covering Japanese news introduces notable Japanese figures who made headlines over the past week, along with related stories.

Masatoshi Ito (伊藤雅俊), honorary chairman of Seven & I Holdings and known as the patriarch of Japan's retail industry, passed away on the 10th at the age of 98. Seven & I Holdings is a giant corporation that owns the Japanese supermarket chain Ito-Yokado and the convenience store Seven-Eleven, which is also well known in Korea. Chairman Ito was the founder who built the predecessors of both Ito-Yokado and Seven-Eleven, and his passing has sparked a wave of condolences.

Born in Tokyo in 1924, Chairman Ito started working at a clothing store run by his uncle in 1956 before becoming independent and opening his own store in Tokyo. With the idea of "Is there a store that sells everything from groceries to clothing?" he expanded the product range and grew the business, eventually founding "Yokado," the predecessor of today's Ito-Yokado. He began full-scale operations in the late 1960s, inspired by American supermarkets that sold almost everything. He expanded the product categories to include food and daily necessities, growing the business into a general supermarket. At this time, the company name was changed to the current "Ito-Yokado," and in 1972, it was listed on the Tokyo Stock Exchange.

Masatoshi Ito, Honorary Chairman of Seven-Eleven and I Holdings.

During the period when the supermarket chain business was growing, Ito-Yokado executive Toshifumi Suzuki discovered a Seven-Eleven store in the United States. At a time when refrigerators were not yet common in households in Texas, the store sold ice for 16 hours a day, seven days a week, and gradually evolved into an early form of convenience store by selling various products together. Chairman Ito and Mr. Suzuki decided to form a partnership and bring this concept to Japan.

However, there was strong opposition within Ito-Yokado at the time. The 1970s was a period of rapid economic growth in Japan, with large shopping centers emerging. Since large companies were benefiting, many small and medium-sized businesses were already dying out. Because of this, the retail industry consensus was that convenience stores would inevitably fail quickly.

Chairman Ito, however, argued that the issue was not competition with large companies but that if productivity was improved and consumer demands were carefully met regardless of scale, there was enough room to target niche markets. Ultimately, in 1974, the first Seven-Eleven Japan store opened in Tokyo. Currently, Seven-Eleven operates over 83,000 stores worldwide, with one-quarter of them in Japan. It was a so-called "big hit."

He quickly recognized and responded to changes in consumer behavior, further growing the company. In an interview with Nihon Keizai Shimbun (Nikkei), Chairman Ito explained his experience dealing with Japan's economic downturn: "Everyone thought that goods weren't selling because of the recession, but in fact, companies failed to notice that consumption patterns had changed," he said. "People weren't not buying because they lacked money, but because the products they wanted weren't available. We realized this and took the initiative to respond first by diversifying product lines."

Exterior view of Ito Yokado store. (Photo by Ito Yokado Facebook)

Chairman Ito had a keen business sense. His passing attracted even more attention in Japan because of his character. He always emphasized the management philosophy that "trust is more important than profit." Ito, who was once listed among Forbes' top 10 richest people in Japan, was also known for his frugal consumption habits. He was not particularly interested in clothes or food, and residents often saw him taking walks alone around his home in Tokyo dressed plainly. In a past interview, when asked whether his success was due to effort or luck, he humbly replied, "Both apply. It was fortunate to start a retail business during Japan's period of rapid economic growth when consumption was stimulated," earning positive public evaluation.

After expanding the business, Ito-Yokado changed its name to Seven & I Holdings in 2005. The letter "I" in "I Holdings" is said to be derived from the initials of Ito-Yokado and Chairman Ito himself. This shows how significant his presence was within the company.

As a side note, Chairman Ito was also a major donor to the famous American management scholar Peter Drucker. The two reportedly kept in touch between the U.S. and Japan, discussing the global economy, Japan's economy, and the direction of Ito's business late into the night.

Following his passing, tributes poured in, mourning the loss of a retail industry legend in Japan. However, since Chairman Ito's departure, Seven-Eleven Japan and Ito-Yokado have faced many ups and downs amid high inflation and economic recession. Ito-Yokado plans to withdraw from the clothing business, and the number of stores scheduled for consolidation due to difficult circumstances is increasing. Chairman Ito left a famous saying: "In everything, the starting point of thought must always be the customer," and "I have not just done business but repeatedly fulfilled my duties as a human being." This seems to offer insight into what companies should truly pursue during difficult times.