Japanese C-Store Giants Leave Smaller Chains Behind

Three largest chains top 10,000 stores, while smaller chains shrink.

July 24, 2014

TOKYO – Major Japanese convenience store chains are racing to expand their networks around the country while their smaller rivals fall further behind, according to an article in the Japan Times.

Seven-Eleven Japan Co., Lawson Inc. and FamilyMart Co., each passed the 10,000 mark for domestic stores as of the end of May, while smaller convenience store operators Circle K Sunkus Co. and Ministop Co. saw their outlets decrease during the same period. The decrease at Circle K Sunkus, a unit of retailer Uny Group Holdings Co., was caused by a franchise shift to Lawson by many shops in Japan’s Kansai region. Ministop meanwhile closed unprofitable stores.

Most recently, Seven-Eleven, a unit of retail giant Seven & I Holdings Co., has been stepping up efforts to open stores in train stations throughout the country and FamilyMart has been actively collaborating with companies in other sectors, including a restaurant chain and a karaoke equipment maker.

Lawson has been putting emphasis on selling more fresh foods in their stores, along with health foods free from synthetic preservatives. Last week, the company said it is considering acquiring Seijo Ishii Co., a high-end supermarket chain operating mainly in Japan’s metropolitan areas.

The convenience store sector is particularly prone to realignment as smaller chains struggle with weak sales, an industry official told the Japan Times.

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