Seven Eleven Announces First Voluntary Retirement in 36 Years... Aiming for Structural Reform

Voluntary Retirement Offered for Employees Aged 45+ with Over 10 Years in Current Position
Third Round Among Lotte Distribution Affiliates

Convenience store chain Seven Eleven is implementing its first voluntary retirement program in 36 years since establishing its domestic corporation in 1988. This move is interpreted as a cost-cutting measure amid ongoing consumer downturn and deteriorating performance.

According to the distribution industry on the 15th, Seven Eleven announced on the company bulletin board this morning that it will conduct a voluntary retirement program. Eligible applicants are employees aged 45 or older or those who have worked in their current position for more than 10 years. Those eligible will receive approximately 18 months' worth of salary, employment support funds, and tuition fees for their children. The application deadline is until the 4th of next month.

Seven Eleven exterior.

A Seven Eleven official explained, "This is a measure to prepare for the mid- to long-term future," adding, "It is part of improving the organizational structure for sustainable growth by streamlining the workforce."

Seven Eleven's decision to implement voluntary retirement appears to be influenced by intensified competition in the convenience store industry combined with the consumer downturn. Korea Seven, the operator of Seven Eleven, posted an operating loss of 4.9 billion KRW in 2022, which expanded to a deficit of 55.1 billion KRW last year. In the first half of this year, it recorded a loss of 44.1 billion KRW, along with a slowdown in sales growth.

As part of structural improvement, the number of stores is also being reduced. Seven Eleven has been conducting brand conversion work on about 2,600 stores of Ministop, a convenience store chain it acquired in April 2022, while closing less profitable existing stores. As a result, the number of stores decreased from 14,265 in 2022 to 13,130 by the end of last year.

Seven Eleven is regarded as the pioneer of the domestic franchise convenience store business. After establishing the corporation in 1988, it opened the first convenience store in Korea, the Seoul Olympic store, in May of the following year. Subsequently, Korea Seven, the operator, was acquired by Lotte Shopping in 1994 and became part of the Lotte Group. Since then, it has successively merged convenience stores such as Lawson, Buy the Way, and Ministop.

This voluntary retirement program by Seven Eleven is the third among Lotte Group's distribution affiliates this year. Earlier, e-commerce platform Lotte On accepted voluntary retirement applications in June, and in August, Lotte Duty Free launched a voluntary retirement program. Both companies have faced prolonged difficulties due to poor performance caused by worsening business conditions.