Convenience stores in Japan - statistics & facts
Konbini – allrounders of retail
Convenience stores are shortened to konbini in Japan and are considered allrounders in retailing. Apart from consumer products, out of which convenience foods like packed meals (bento) are a popular segment among the working population, the small retail stores also offer services like postal services, the settlement of utility bills and online purchases, and ticketing machines among others. Even though supermarkets remain the main channel in food retailing in Japan, konbini has found a nice market catering to busy consumers looking for daily necessities and fast services convening in one place with long opening hours. The business concept relies on smaller-sized packaging of consumer goods, commonly sold at slightly higher price points than supermarkets, and high customer frequency to offset the low revenue per customer.Trends and challenges of convenience stores
The sector experienced significant growth over its half-a-century history, during which it adapted to changes in retailing and expanded its services to meet consumer demand. However, the decline in the number of convenience stores in operation lately suggests the saturation of the market. While the three largest operators – Seven-Eleven, FamilyMart, and Lawson – use franchising agreements to maintain their grasp over the market, smaller brands focus on regionality to win over consumers. Seasonally changing private brand confections are a unique strategy to create buzz on social media and set themselves off from the competition.Furthermore, demographic challenges are weighing down on the sector. As Japanese society ages and the workforce declines, businesses are questioning the viability of the trademark 24-hour operation strategy amid rising energy prices. Store operators are looking towards artificial intelligence, unmanned stores, and virtual assistants to reduce operating expenses and build a future-proof concept for the several ten thousand stores within the country.