Browse > Home / Convenience Stores, Economic Reports, Retail / Japan convenience store sales up 4.2% in June, higher sales projected for July

Japan convenience store sales up 4.2% in June, higher sales projected for July

July 25, 2008
By Ken Worsley


While sales at both department stores and supermarkets continued to flounder in June, sales at convenience stores rose 4.2% year-on-year in June after having posted a 3.7% increase in May. According to data released by the Japan Franchise Association, sales at the nation’s convenience stores came to 648.7 billion yen in June, which was just lower than the 648.8 billion yen seen in May.

The future looks even brighter for convenience store sales. Reuters is reporting that the Taspo ID system, which must now be used nationwide to purchase tobacco products at vending machines, is providing a boost to tobacco sales at convenience stores. July’s sales increases are projected to surge into the double digit range.

Share prices at major supermarket chains Family Mart and Lawson are up 22% over the past quarter, as the market anticipates what could be the highest sales growth posted in the past decade at many convenience store operators.

One interesting part of the Reuters article: While department stores and supermarkets continue to blame bad weather for their decline in sales, “price hikes at supermarkets and favourable weather have helped sales [at convenience stores].”

Of course, growth from tobacco sales will be filtered out of the system in a year’s time, and Japan’s convenience store chains are still going to have to find ways to continue increasing revenue, which means we still expect to see Japanese convenience store firms make further attempts to establish overseas operations.

Filed Under Convenience Stores, Economic Reports, Retail 

Social Bookmarks:
del.icio.us:Japan convenience store sales up 4.2% in June, higher sales projected for July digg:Japan convenience store sales up 4.2% in June, higher sales projected for July newsvine:Japan convenience store sales up 4.2% in June, higher sales projected for July furl:Japan convenience store sales up 4.2% in June, higher sales projected for July reddit:Japan convenience store sales up 4.2% in June, higher sales projected for July
Related Posts:
Japan’s convenience stores loving the Taspo card; sales up 7.5% in August
Tokyo, Nationwide Department Store Sales Down in July
Japan’s department store sales down 7.6% in June
Japan’s Department Stores see Surge in June Sales
Japan’s April Department Store Sales Down 1.3%

Comments

One Response to “Japan convenience store sales up 4.2% in June, higher sales projected for July”

  1. Contrarian on July 25th, 2008 7:31 am

    Japanese exports to the US dropped for the first time in over 4 years in June. Shipments of cars to the US dropped 14.2 percent.

    Europe and Hong Kong are looking soft.

    I haven’t heard any talking heads on TV mention decoupling lately. It would be satisfying if it didn’t come with the gravity of the markets.

Got something to say?