The number of convenience stores in Japan will reach a new high for three consecutive years
Release Time:
2013-01-05 17:58
Source:
Phoenix Net Finance
The top 5 convenience store chains in Japan plan to open a total of up to 4,000 stores in 2013. The net increase (number of openings minus closures) is expected to be over 2,300, setting a new historical high. The customer base of Japanese convenience stores is expanding to include women and the elderly, and each convenience store company sees huge potential for new store openings. Against the backdrop of sluggish sales in supermarkets, department stores, and food service companies, the presence of convenience stores in the domestic Japanese consumer market will further increase.
The total number of store openings by 7-11, Lawson, FamilyMart, Circle K Sunkus, and MINISTOP is between 3,900 and 4,000. This exceeds the 2012 target of 3,700 stores and will set a new historical high for the third consecutive fiscal year. The net increase is between 2,320 and 2,420 stores, a growth of 5–9%, which is slower compared to the over 20% growth in 2012.
As of October, the number of convenience stores in Japan exceeded 50,000 for the first time, and sales competition is intensifying. Sales at existing stores in November fell 2.5% compared to the same month last year, marking six consecutive months of year-on-year decline. Against this backdrop, while new store openings are increasing, closures of loss-making stores are also on the rise.
Among the five companies, four plan to increase store openings. 7-11 plans to open 1,500 stores, a 10% increase over 2012. In spring 2013, it will enter the Shikoku region for the first time and plans to open 250 stores there over the next three years. FamilyMart plans to open 1,000 stores, a 25% increase over 2012. It will open smaller stores with lower opening costs in sparsely populated areas in the future.
Circle K Sunkus is expected to open 500 stores, an 18% increase, while MINISTOP plans to open 200 stores, a 5% increase. The only company reducing store openings is Lawson, which plans to prioritize strengthening existing stores.
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