Japanese retail giant Seven & i Holdings Co. is set to list its supermarket unit, Ito-Yokado Co., as part of efforts to focus on its mainstay 7-Eleven convenience store operations, sources familiar with the matter said Tuesday.

The listing could take several years to materialize, with Seven & i likely continuing to hold a certain stake in the unit even after the share sale, the sources said.

Seven & i President Ryuichi Isaka is expected to announce the plan at the company's earnings press conference on Wednesday, according to the sources.

The move comes as Ito-Yokado starts to see signs of recovery due to recent restructuring measures, including the closure of its unprofitable stores and exit from its apparel business. The supermarket unit has been struggling for years due to increased competition from specialized retailers and online shopping.

Seven & i has been under pressure from ValueAct Capital, a U.S. investment fund and an activist shareholder of the Japanese retailer, to focus on its cash cow Seven-Eleven business.

As part of restructuring plans, the Japanese retail giant sold its struggling department store unit Sogo & Seibu Co. to U.S. fund Fortress Investment Group LLC in September last year.

==Kyodo

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