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Japan’s convenience store sales up in 2008, top department store sales for the first time

January 22, 2009
By Ken Worsley


According to data released Tuesday by the Japan Franchise Association, convenience store sales in Japan rose 6.7% in 2008, for the first yearly rise in nine years. On the same day, it was also announced that convenience store sales in December increased 8.5%.

Despite the continued slump in department store and supermarket sales, Japan’s convenience stores have enjoyed a robust 2008. For the first time ever, convenience store sales in Japan have exceeded sales at department stores; department store sales were at about 7.4 trillion yen while convenience stores rung up about 7.86 trillion yen in 2008.

Increased tobacco sales due to the introduction of the Taspo card was a major contributor to the spike in convenience store sales in 2008, and the year-on-year effect of increased tobacco sales will last until July of this year. Still, it seems likely that the recession, the increasing number of single-person households, more diverse product lineups and the introduction of store brand items - at 7-11 in particular - also contributed to the sales increase at convenience stores last year.

It does appear as though convenience store sales are rising when the boost in tobacco sales is stripped out. If that continues into 2009, convenience store operators might find themselves in the uncomfortable position of hoping for a longer recession than is expected.

Filed Under Convenience Stores, Economic Reports 

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Comments

5 Responses to “Japan’s convenience store sales up in 2008, top department store sales for the first time”

  1. Chris (i-cjw.com) on January 22nd, 2009 8:12 pm

    To be fair, the TASPO effect went beyond helping just tobacco sales at the convenience stores - the stores do report that people buying cigarettes (who would previously have gone to the vending machine) were inclined to purchase additional impulse items as well. Rather than a continued recession, I would have thought the convenience store chains would be better to pray for further misguided government schemes like TASPO…

  2. Ken Worsley on January 23rd, 2009 8:23 pm

    Chris, good point. I wonder what they could be hoping for? If I were them I’d hire a PR firm to spread the idea that vending machines are dangerous - especially at night. Pressure the government to restrict the use of vending machines to sell soft drinks, etc. Given that there’s trouble with the ore ore scams at ATMs, maybe they could push for mandatory payment of utilities bills at convenience stores. I’m sure there’s other ideas out there.

  3. Baldrick on January 31st, 2009 12:12 am

    Divide ward taxes into monthly, hell weekly, payments and make them payable at convenience stores only.

  4. Ken Worsley on February 1st, 2009 1:12 am

    Baldrick, Great name. But that would involve a tieup on a scale yet unseen. I’m thinking something more along the lines of convenience stores giving out consumer loans.

  5. DaColl on February 7th, 2009 1:11 am

    More single person households, and people shopping closer to home are probably big reasons. Have you noticed how many people are covering their cars with tarps these days? No one can afford the fuel, insurance, maintenance etc to keep their cars on the road… easier to walk to the local combini than to drive or bike to the nearest supermarket. With a bento, you don’t need to pay for gas/electric to cook at home as well.

    Has anyone by chance heard how much the economy has pushed mama-chari sales? I’m guessing that’s also a positive trend recently.

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