A Shift Towards Quality and Unmanned Operations
The number of convenience stores in Japan, known as "konbini," has been steadily declining in recent years. In March 2023, the total number of konbini nationwide dropped by 119 to 55,620, marking the 22nd consecutive month of year-on-year decline. This trend is attributed to a saturated market, rising personnel costs, and an aging population.
However, despite the shrinking number of stores, the industry's combined annual domestic sales reached a record high of over 11 trillion yen in 2023. This indicates a shift in focus from quantity to quality, with konbini chains prioritizing the profitability of individual stores over simply expanding their network.
One key strategy employed by konbini chains is the introduction of compact, unstaffed stores. These stores typically occupy smaller spaces, offer a limited selection of goods, and utilize self-checkout systems or smartphone payments. Seven-Eleven Japan plans to open 50 such stores within office buildings, while FamilyMart has already implemented unmanned stores in over 30 locations.
Another approach is the relocation of existing stores to more prime locations. This allows konbini to capitalize on changing demographics and adapt to evolving customer needs. Additionally, konbini chains are exploring partnerships with other businesses, such as Lawson's collaboration with mobile carrier KDDI to sell products in cellphone shops.
Overall, the konbini industry in Japan is undergoing a significant transformation. While the number of stores is decreasing, the focus is shifting towards quality, efficiency, and innovative solutions to cater to the changing market landscape. This includes the implementation of unmanned stores, strategic relocation, and partnerships with other businesses. These developments suggest that the future of konbini in Japan lies in adapting to the evolving needs of consumers and leveraging technology to enhance convenience and profitability.