Next Generation Convenience Stores

[Mulboyne]

The first one opened today in Nerima.

Asahi: Lawson to start 100-yen `supermarket' chain
In a bid to cash in on cost-cutting consumers, Lawson Inc. will open outlets that are similar to 100-yen stores but operate like small-scale supermarkets, the company said Monday. Lawson's new outlets, the first of which will open Friday in Tokyo's Nerima Ward, will offer everything from miscellaneous daily goods to fresh vegetables and packaged meat, company officials said. Lawson plans to operate about 100 of the stores by the end of February 2006, and eventually increase that number to between 700 and 1,000 by February 2008, the officials said. Ordinary items sold at convenience stores, including beverages and daily commodities, will be priced at 100 yen, excluding tax.

[Mulboyne]

Asahi: Fresh veggies keeping discounters healthy
When an operator of 100 yen shops began selling perishable foods five years ago, it did a lot more than boost revenue-it sent a jarring wake-up call across three retail sectors. Ninety-nine Plus Inc.'s successful encroachment into supermarket space has sparked reprisals, however. Some convenience store chains have opened fresh-food outlets, modeled after 100 yen shops, while supermarkets are staying open longer, with more and more of them operating around the clock...Ninety-nine Plus is no longer alone in the niche it created...Lawson Inc. in May launched its first 100 yen shop, dubbed Store 100, in Tokyo's Nerima Ward...Another convenience store operator, am/pm Japan Co., opened its first one-price outlet in Tokyo's Meguro Ward in March. The shop sells vegetables and fruits for a tax-exclusive 98 yen per package. Three F Co., a Yokohama-based convenience store chain, has opened four q's mart outlets with a line of perishables in Kanagawa Prefecture since December 2003.

[Andocrates]

Oh great, so now i can buy tiny dried fish in a bag for 100 Yen. Sign me up

[Mulboyne]

Yomiuri: Convenience gets posher / Upscale Seijo Market chain planned by am/pm operator
In a sign of the increasing polarization of the convenience store industry, Rex Holdings Co., the operator of Gyu-Kaku barbecue restaurants and other food-related chains, unveiled a plan Thursday to launch a high-end convenience store chain in October. The company plans to open three pilot Seijo Market outlets by the end of this year, with a target of 218 stores in the Tokyo metropolitan area by 2008, according to company sources. Competition in the convenience store industry has intensified, with a number of operators entering the 100 yen store business. As a result, there is a growing divide between low- and high-priced outlets...Women in their 30s to 50s living in central areas of Tokyo are the main target consumers for the new chain, with the product range to include imported cheese products, bento produced at factories directly operated by Seijo Ishii and fresh vegetables...Rex President Tomoyoshi Nishiyama said, "Product differentiation will be the key to success in the oversaturated market of convenience stores."

[Mulboyne]

Another twist in the convenience store wars. Supermarket Seijo Ishii - now under the control of Rex Holdings - later this month will launch Seijo Market, a "high end" convenience chain with the first store along Hachiman Dori in Daikanyama, Tokyo. Rex wishes to target wealthy singles and DINKs in the centre of the city.

At present, Japan's food market is going through a revolutionary change caused by the bipolarization of consumption, demographic changes...and an increase in one- and two-person households. Continuing with the same strategy as in the past will make it difficult to survive in this competitive food market.

[Mulboyne]

Lawsons is considering a new strategy - making its convenience stores less convenient, according to ZakZak (Japanese).

All 8077 stores currently operate 24 hours a day but some older francise owners are questioning the value of that policy and the president has pledged to review it. Convenience store sales have seen year-on-year declines for 16 consecutive months and existing franchise owners have seen their sales hit by the operators policy of opening stores closer and closer together. If the review supports the idea, some Lawson's stores may be allowed to close in the early hours.

[Big Booger]

Lawsons is considering a new strategy - making its convenience stores less convenient, according to ZakZak (Japanese).

All 8077 stores currently operate 24 hours a day but some older francise owners are questioning the value of that policy and the president has pledged to review it. Convenience store sales have seen year-on-year declines for 16 consecutive months and existing franchise owners have seen their sales hit by the operators policy of opening stores closer and closer together. If the review supports the idea, some Lawson's stores may be allowed to close in the early hours.

I smell the end of lawsons... Sebun Erebun ikebun!

[Mulboyne]

Bloomberg: Don Quijote to Raise Stake in Origin Toshu

Don Quijote said it will raise its stake in Origin Toshu Co., an operator of stores that sell "bento" takeout lunches...to 51.2 percent...The move is part of a plan to create a "next generation" convenience store...more...

No details of what a "next generation" store might be.

[Greji]

Lawsons is considering a new strategy - making its convenience stores less convenient, according to ZakZak (Japanese). -snip-
"....Convenience store sales have seen year-on-year declines for 16 consecutive months...."

I'm not sure I understand everything I know about that statement. I suppose they could mean it as losses for "two years running". However, 16 months would seem to be a rather short long term view of their profit trends!

[maninjapan]

Wooooo hang on there Lawsons, in Kanagawa we already have shops like that, the 99yen called "Shop 99" - which is great for stuff like this but meat and fish are a rip off diddy portions for relatively high price compared to supermarkets.

[Kuang_Grade]

All 8077 stores currently operate 24 hours a day but some older francise owners are questioning the value of that policy and the president has pledged to review it. Convenience store sales have seen year-on-year declines for 16 consecutive months and existing franchise owners have seen their sales hit by the operators policy of opening stores closer and closer together. If the review supports the idea, some Lawson's stores may be allowed to close in the early hours.

I'm not sure I understand everything I know about that statement. I suppose they could mean it as losses for "two years running". However, 16 months would seem to be a rather short long term view of their profit trends!

I believe the way to read it is 'every month for the last 18 months, if you look at that the total sales for preceding 12 months, they have gone down compared when looking at a similar period of time from the month before". Which means, over time, either you are losing customers and or your remaining customers are spending less or both. While still likely profitable, it doesn't paint a good picture for the future esp. in the context that they sell mass appeal items (ie, new products/product lines may not pull them out of this hole) and they may be facing bigger issues, such as demographic shifts that are beyond their control. In this light, working on the factors that they can control (such as changes in store hours to minimize expenses) makes sense.

[Mulboyne]

ABC: 'Shop for the elderly' opens in Japan
A convenience store chain in Japan has opened outlets tailored for the elderly, featuring wider aisles, larger price labels and a chill out space. The model store on Awaji Island opened today. Japanese convenience stores used to target customers in their 20s to 30s, but sales have been sluggish because of tougher competition and the rapidly aging society...The Awaji store has a calming brown sign, a departure from Lawson's trademark blue, and features a rest space and an array of items targeting the elderly. The rest space is equipped with tables and a liquid crystal display television, in addition to massage chairs, so that customers can freely eat, drink and have conversations while shopping. During a pilot program last year in Kawanishi, steps such as installing blood pressure monitors and enlarging price labels turned out to be so popular that they led to a 50 per cent increase in store sales.

[Mulboyne]

Don Quijote said it will raise its stake in Origin Toshu Co., an operator of stores that sell "bento" takeout lunches...to 51.2 percent...The move is part of a plan to create a "next generation" convenience store

[floatl][/floatl]Don Quijote lost out to Aeon in the Origin Toshu deal but they are still planning convenience stores. The first will be in Nishihara, Shibuya-ku Tokyo, opening around late August. The tentative name for the chain is "Picasso". The company plans to have around 10 such stores open by around June of next year. Since the Picasso brand is already in use for other store formats (see left), there may be a rethink on the name if the experiment seems successful.

[emperor]

the 'excluding tax' bit is annoying... stuck rumaging for 5yen or getting a buttload of change!!

id rather buy things in denominations of 500,1000,2000,5000,10000...if it meant tax was included

[Mulboyne]

Wooooo hang on there Lawsons, in Kanagawa we already have shops like that, the 99yen called "Shop 99"

Asahi: Lawson to form tie-up with discounter

Lawson Inc. said Wednesday it will form capital and operational alliances with Ninety-nine Plus Inc., which operates Shop99 discount stores. The companies could integrate operations in the future. The first step will be to combine Lawson's Store100 outlets, which sell mainly perishables, and Shop 99 outlets, which handle food and sundries. Lawson will acquire about 20 percent of shares in Ninety-nine Plus for about 3.8 billion yen through a third-party share allocation on March 16 to become the second-largest shareholder. The convenience store chain plans to raise its stake and become the largest shareholder.

[Mulboyne]

Family Mart has started opening more stores inside stations, hoping to generate more sales from people who have gone through the ticket gates. The store above, called "Tomony", opened yesterday along the Seibu Ikebukuro line. It also has a cash register facing towards customers outside the ticket gates for sales of sweets, newspapers and cigarettes. Lawson and AM/PM are also talking to other railway companies about expanding outlets train-side. A Family Mart spokesman said that even though the convenience store market seems saturated, there are still opportunities to open outlets in stations, universities and hospitals.

[Mulboyne]

Asahi: No shortage of new ideas as 'konbini' battle to survive

'The croquettes are ready!" The shout from behind the cash register resounds through the convenience store. Stacked on a shelf near the entrance are fried croquettes and other deep-fried fare, fresh from the fryer and piping hot. For konbini, survival is a constant struggle. Since the first one opened in Japan some 30 years ago, they've spread all over the country; now there are more than 40,000 nationwide. In a sense they are victims of their own rapid growth. Their sheer numbers make for grueling competition--with each other and also with newcomers to the field, like all-night supermarkets. How to attract and hold customers when there's bound to be another outlet just down the street? The only answer is an inexhaustible stock of new ideas, new products and new services. The fresh-fried croquettes are a highlight at the experimental "Deli-tate Lawson" in Tokyo's Shinjuku Ward. "Deli" means delicatessen; "deli-tate" is a pun on dekitate, meaning fresh from the oven...You generally think of a konbini bento as something to simply toss into the microwave. Lawson is working to upgrade that image. Starting next year it plans to increase the number of stores where bentos are cooked on the premises...more...

[Mulboyne]

Lawsons is considering a new strategy - making its convenience stores less convenient, according to ZakZak (Japanese). All 8077 stores currently operate 24 hours a day but some older francise owners are questioning the value of that policy and the president has pledged to review it.

A Mainichi report (Japanese) suggests that 83% of respondents surveyed said that they did not need 24-hour convenience stores if shorter opening hours would help reduce energy needs and help combat global warming. Some cliam that a move to 16 hours would cut emissions by around 3-4%.

[GuyJean]

.. Some cliam that a move to 16 hours would cut emissions by around 3-4%.

Um. Shouldn't that be around 30% if they cut the hours by a third?.. Oh, I get it; they would leave all the lights on and continue heating the place..

GJ

[Mulboyne]

That 3-4% figure comes from the industry association who contrast it with a forecast of a potential fall in sales of around 20% and so are opposed to any legislation restricting their opening hours.

[james]

[quote="GuyJean"]Um. Shouldn't that be around 30% if they cut the hours by a third?.. Oh, I get it]

they could probably reduce energy costs significantly if they'd just dim the damn lights. i've always found the places to be about twice as bright as they need to be.

[GuyJean]

That 3-4% figure comes from the industry association who contrast it with a forecast of a potential fall in sales of around 20% and so are opposed to any legislation restricting their opening hours.

What would I do without you, Mulboyne? I'd have to read the articles myself!

GJ

[Kuang_Grade]

Also, for refrigerated items, the cooling costs for those items will likely remain roughly the same if the store is open or closed

[ttjereth]

Also, for refrigerated items, the cooling costs for those items will likely remain roughly the same if the store is open or closed

Nah, they'll just have to spend more on new expiration date labels

[dimwit]

I saw one of those Lawson's around the neighborhood and the exterior color was brown/gold. Looking inside I couldn't see any difference between the regular blue/white Lawsons and this one.

[Mulboyne]

I saw one of those Lawson's around the neighborhood and the exterior color was brown/gold. Looking inside I couldn't see any difference between the regular blue/white Lawsons and this one.

More cosmetics, more fresh pastries and a wider range of "organic" products seem to be the main differences. They seem to put them where there is good female customer traffic or else near high end apartment complexes.

[hundefar]

There is some sort of organic Lawson out in Ebisu. Fresh produce, organic juice and so on..and most important: no dirty magazines.

[omae mona]

More cosmetics, more fresh pastries and a wider range of "organic" products seem to be the main differences. They seem to put them where there is good female customer traffic or else near high end apartment complexes.

It looks like Natural Lawson has 77 stores in Tokyo with another 4 in Kanagawa and Chiba. When I've visited, I noticed the pastries are not just fresher - they're actually baked on premises. Usually a heck of a bread smell coming out of the back room.

[Taro Toporific]

It looks like Natural Lawson has 77 stores in Tokyo... Usually a heck of a bread smell coming out of the back room.

Last night I was at the Natural Lawson's in Denechofu (the closest Yamato takkyubin outlet from my house). I also noticed they were baking fresh croissants for customers at fuckquing 12 midnight.

[Mulboyne]

Lawsons is considering a new strategy - making its convenience stores less convenient, according to ZakZak (Japanese).

All 8077 stores currently operate 24 hours a day but some older francise owners are questioning the value of that policy and the president has pledged to review it. Convenience store sales have seen year-on-year declines for 16 consecutive months and existing franchise owners have seen their sales hit by the operators policy of opening stores closer and closer together. If the review supports the idea, some Lawson's stores may be allowed to close in the early hours.

It may not be their decision:

Yomiuri: Shops may be asked to shut in wee hours

Convenience stores and other retailers that open 24 hours a day may be forced to cut their opening hours as part of efforts to address global warming being considered by 21 local governments, according to the results of a Yomiuri Shimbun survey. However, the mooted plan has provoked strong opposition from the convenience store industry, which insists convenience stores help prevent late-night crimes and provide lifelines in case of emergency. The effectiveness of these envisioned measures also has raised more questions than answers, with industry projections showing that if convenience stores were to suspend their operations between 11 p.m. and 7 a.m., the reduced use of lighting and electricity would only help reduce Japan's greenhouse gas emissions by 0.009 percent. Lively debate is expected over the legitimacy of regulating the opening hours of private sector businesses, particularly because late-night convenience stores have come to be seen by many as an essential part of life. Family restaurants, supermarkets, gas stations and convenience stores are among the major establishments that remain open late at night--a term that generally refers to businesses that operate after 11 p.m. The Japan Franchise Association's 12 member companies number 42,246 convenience stores. Of those, 39,878 stores, or 94.4 percent, are open 24 hours a day.

The Yomiuri survey covered 47 prefectures and 17 government-designated major cities. The poll showed that the Tokyo metropolitan government, Saitama and Kanagawa prefectural governments, and Kyoto and Yokohama municipal governments already have started examining regulating the opening hours of convenience stores and other establishments. In addition, Miyagi, Fukushima and nine other prefectures as well as five government-designated cities plan to consider such a measure. Of the local governments currently examining regulating convenience stores, Saitama prefectural government made clear it will ask convenience stores to voluntarily scale down 24-hour operations. The Kanagawa prefectural government might ask retailers to curtail all environmentally irresponsible activities, including staying open around the clock, in its ordinance, an official of the prefecture's environmental and agricultural policy department said. Many of the local governments that plan to examine the issue said they believe regulation of the business hours of convenience stores would prove worthwhile, according to the survey. "It will be effective to regulate [convenience stores'] business hours with an ordinance in order to reduce greenhouse gas emissions," the Sendai city government said. "We believe it is necessary to take some measures against the private sector," the Saga prefectural government said.