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7-Eleven Japan sales down, for the first time in 27 years

April 14, 2007
By Ken Worsley


Quick: Who is Japan’s largest retailer?

It’s 7-Eleven, though I suppose that could be inferred from the title. After sales at Japan’s convenience stores declined 1.1% year-on-year in February, in a statement issued today, 7-Eleven announced that operating profit from its shops declined 1.8% to 206.1 billion yen ($1.73 billion) for the year ending February 28.

1.8% is not a huge fall, but it is the first decline in 27 years for 7-Eleven, which formed 7&I holdings in 2005 to manage 7-Eleven, supermarket chain Ito Yokado, and Denny’s Japan.

7-Eleven has possibly lost some ground in the convenience store arena due to the fact that it has not responded to recent trands and changes in the industry. Competitor Lawson has opened “Natural Lawson’s” shops in urban areas, and is trying to push a (slightly) more upscale vibe along with (reputedly) healthier food. 7-Eleven hasn’t done much to compete with this, and a quick look at their homepage shows a promotion for the ‘Vegetable Rice and Fish’ bento that will only be sold in Tochigi Prefecture as the only real promotion in terms of ‘low calorie’ food.

An interesting battle should be heating up. 7-Eleven has done quite a bit to shake up and make waves in the Japanese market. This observer will be eager to see how they respond to changes in consumer behavior.

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Comments

One Response to “7-Eleven Japan sales down, for the first time in 27 years”

  1. Garrett on April 15th, 2007 12:49 am

    Natural Lawson doesn’t have healthier food, but it does have better beer and sake. Unfortunately, though, Natural Lawson seems to treat every exciting offering as a novelty. My local one had a rack full of great beers - from local brews to organic ones to Kronenbourg - in the summer, only to have nothing more exciting than Echigo by late Fall.

    7-11 rules mostly because their ATMs actually work and actually accept any Japanese bank card; that can’t be said of any other ATMs in Tokyo, at least. I’ve also never been in a dirty, under-stocked, or reeking 7-11 - problems that not infrequently plague Family Mart and Sunkus, which is so bad, my wife and I have long referred to the chain as “KuSunkus.”

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