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Isaka, 58, who successfully led the group's Seven-Eleven Japan
convenience store chain, was officially named president, ending
the 24-year reign of charismatic former CEO Toshifumi Suzuki who
is stepping down after a failed bid to oust Isaka.
But in a sign Isaka may not have a free hand in implementing a
radical overhaul of the $90 billion retail conglomerate, the
company said Suzuki, widely respected in Japan's retail
industry, will stay on as an honorary adviser.
Many of the company's managers and employees still revere
Suzuki, a pioneer of Japan's now-ubiquitous convenience stores.
Isaka's decision to keep Suzuki on is seen as an olive branch
that could help mend a divided board and management.
Loeb has said the company should focus on growing its profitable
convenience store chain and overhaul its weak Ito-Yokado
supermarkets. Investors have also urged it to sell off or
restructure its luxury clothing store Barneys Japan, Seibu
department stores and mail-order business Nissen.
Suzuki confirmed at Thursday's shareholder meeting that he would
stay on as an adviser, and thanked shareholders for their
support since his early days when the company's annual sales
were a mere 4 billion yen ($36.5 million). He also defended the
retail group's performance.
"Today the group's sales total over 10 trillion yen," he said.
"Now, there is some concern about Yokado and Seibu. But Yokado
has shown improvement, albeit gradual, since the start of the
year. Seibu is also trying with new products."
Isaka shook hands with Suzuki at the shareholders' meeting, and
tried to play down the conflict, saying he aimed to carry on his
predecessor's management philosophies.
Suzuki resigned as CEO in April after the board refused to
rubber-stamp his proposal for Isaka to step down, a proposal
criticized by some investors as an attempt to elevate one of his
sons to a more senior position.
The board's rejection of Suzuki's proposal, was widely seen as a
sign of improving corporate governance in Japan, where corporate
boards rarely challenge CEOs.
But worries that Isaka will face strong resistance from within,
as well as fears Japanese retailers would struggle with weak
consumer sentiment for a while longer, have dragged Seven & i's
shares down 15 percent so far this year.
(Reporting by Ritsuko Shimizu; Writing by Ritsuko Ando; Editing
by Muralikumar Anantharaman)
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