7-Eleven operator closes all Israel stores amid tensions

TOKYO: Japanese retail giant Seven & i Holdings Co has closed all eight of its convenience stores in Israel, as the tensions in the Middle East raised risks of continuing business, a source close to the matter said on Tuesday.
The retailer is the first known Japanese company to conduct a large-scale closure of stores or withdraw from Israel since the latest Israel-Hamas conflict erupted in October last year, according to credit research company Teikoku Databank Ltd.
Seven & i opened its first Israeli 7-Eleven store in Tel Aviv with a US group company in January last year, and had planned on expanding throughout the country over five to six years. The stores featured “Slurpee” frozen drinks, popular in the American franchise, and kosher foods.
Seven & i had been the only major Japanese convenience store operator with stores in Israel, until they were all closed by the end of July. All Japanese employees have already left the country.
As of the end of August this year, the retailer operated around 84,000 stores across 19 countries, including China, South Korea and the United States. It opened its first store in Laos in September last year.
By 2030, the company has said it aims to expand to 100,000 stores across 30 countries and regions, mainly in Europe, South America, the Middle East and Africa.
As of October last year, Japanese companies that operated in Israel totalled 92, of which at least 40% was in the manufacturing sector, according to Teikoku Databank.
An official of the research firm said there were some small-scale withdrawals by companies in Israel as tensions heightened in the Middle East, but they had been struggling prior to the conflict.
Following the surprise attack on Israel by the Palestinian militant group Hamas on Oct 7, 2023, which triggered the conflict in Gaza, clashes have intensified between Israel and its regional foe Iran and allied groups across the Middle East.