,Japan

Japan's convenience stores' plans for turning around from lower sales in 2020

Convenience chains are focusing on returning to a growth trajectory.

All of Japan’s leading retailers—Seven & i Holdings, Aeon, and Lawson—faced lower sales and customer visits in 2020, despite the average basket size being larger than ever before, amidst challenges faced across the convenience industry, according to a report from IGD.

Returning to a growth trajectory is a priority for all convenience chains, the report noted. Lawson, for example, is repositioning its stores to target purchases for essential daily goods and focusing on delivering better localised stores.

Meanwhile, supermarkets continued to see buoyant demand and growth in sales. Group revenue at Aeon, for example, was positive unlike 7&i and Lawson, given its smaller convenience operations and stronger supermarket emphasis and healthy and beauty operations.

Seven & i’s total group sales fell 7.9% to $100.9b (JPY11.04t) during the year, whilst its revenue dropped 13.2% to $52.7b (JPY5.77t). Similarly, Lawson’s consolidated net sales of group convenience stores declined 6.3% to $21.9b (JPY2.35t)

Meanwhile, Aeon’s group operating revenue held steady at $78.6b (JPY8.6t). However, its group operating profit fell 30.1% to $1.4b (JPY150.6b) over the same period.
 

Join Retail Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Sales of cat and dog snacks and animal grooming products more than doubled.
It is planning to open 10 stores in the country by the end of 2021.
It features larger texts, simplified navigation, and voice-assisted technology.
Korean laws forbid workers from working more than 52 hours per week.
And a Beijing bakery rolled out a Squid Game-inspired confection-making contest.
Products with the 'Shop Now' icon can be fulfilled by nearby physical stores within 3km.
This move is in line with its goal to accelerate recommerce growth in SEA.
The 350,000 sq ft West Fulfillment Centre is worth close to S$100m.
In-app purchases rose between March and July 2021 despite a global decline of 2.05%.
Orders through social media jumped by over 100% in the first half of the year.
MSMEs account for at least 45% of this amount, according to an Amazon report.
Most customers challenged themselves with the umbrella-shaped dalgona.
The food delivery platform will offer training in hiring and supporting employees with disabilities.
Traditional grocers have yet to gain footing in the online space due to large investment needed.