[Alpha Biz= Reporter Kim Sangjin] 7-Eleven is set to introduce its first voluntary retirement program since its establishment in 1988, as reported on October 15 by Korea Seven, the operator of the convenience store chain.
The announcement made on the company’s internal bulletin indicates that the voluntary retirement program will be available to employees aged 45 and older or those who have held their current position for more than 10 years. Eligible participants will receive 18 months' worth of salary, job support funds, and educational assistance for their children, with the application deadline set for November 4.
Korea Seven stated that the decision is part of an initiative to streamline its workforce for sustainable long-term growth amid intensified competition in the convenience store market, which has led to declining performance. The company has reported consecutive annual operating losses, amounting to 4.8 billion won in 2022 and 55.1 billion won in 2023. In the first half of this year, sales growth slowed down, resulting in a deficit of 44.1 billion won.
Following the acquisition of Mini Stop in 2022, 7-Eleven has implemented aggressive cost-cutting measures, including the closure of underperforming stores. The total number of outlets decreased from 14,265 in 2022 to 13,130 by the end of last year. The company is also looking to divest its ATM division (formerly Lotte PS Net) to concentrate more on its core convenience store operations.
This marks the third voluntary retirement program initiated by Lotte Group's retail division in 2024. Earlier, Lotte Shopping's e-commerce platform, Lotte On, announced a voluntary retirement option in June, followed by Lotte Duty Free in August. Both companies have faced prolonged operational challenges and financial losses, with Lotte On reporting approximately 100 billion won in losses annually since its inception in 2020 and Lotte Duty Free experiencing four consecutive quarters of operating losses since the third quarter of last year.
알파경제 Kim SangJin (letyou@alphabiz.co.kr)
