Convenience Stores Shift Focus to Quality Amid Shrinking Numbers
The number of convenience stores in Japan continues to decline, with the latest figures showing a year-on-year drop of 0.2% to 55,620 outlets in March 2024. This marks the 22nd consecutive month of decline, highlighting the changing landscape of the konbini industry.
While the total number of stores is shrinking, the combined annual domestic sales remain strong, reaching a record high of over 11 trillion yen ($72.66 billion) in 2023. This suggests that consumers are spending more at the remaining stores, indicating a shift towards quality over quantity.
Several factors contribute to the decline in konbini numbers. The market is considered saturated, with fewer profitable locations available, especially in non-urban areas. Additionally, franchisees face challenges with rising personnel costs and utility expenses, making it difficult to justify opening new stores.
In response to these challenges, major konbini chains are adopting new strategies. They are focusing on improving the quality of existing stores, relocating them to better locations, and exploring new formats such as compact, unstaffed shops.
Seven-Eleven Japan plans to open compact stores within office buildings, offering a limited selection of goods and utilizing self-checkout technology for smartphone payments. FamilyMart has already implemented unmanned stores in various locations, including office buildings and commercial facilities.
Lawson, soon to be under the joint operation of KDDI and Mitsubishi, is exploring the possibility of selling its products through au-branded cellphone shops. The company also aims to develop new services leveraging digital technologies and communication systems.
These initiatives demonstrate the konbini industry's adaptation to changing market conditions. By prioritizing quality, exploring new formats, and embracing technology, convenience stores are seeking to maintain their relevance and profitability in the years to come.