Labor shortages affecting 24-hour convenience stores

January 10, 2018

TOKYO- Major Japanese convenience store operators continue to open new stores while facing difficulties in maintaining 24-hour store operations amid an increasing manpower shortage in Japan.

Some convenience store operators are overcoming staff shortages, including part-time staff, by promoting the automation of certain store operations. But one of the operators has started closing some stores late at night, when customer traffic is slow.

Amid intensifying competition, how each company deals with labor shortages may reflect their differing management styles, experts say.

FamilyMart Co. has experimented with closing some of its domestic outlets late at night or switching to vending machine-based operations. FamilyMart President Takashi Sawada said 24-hour operations are not necessary at some stores.

In response to labor shortages, Lawson Inc. has developed a system by which customers complete transactions for products at unattended checkout counters late at night using a smartphone app. The company plans to test the system at some outlets this spring.

Convenience stores can be disaster response and crime prevention bases because they are open 24 hours, Lawson President Sadanobu Takemasu said.

Industry leader Seven-Eleven Japan Co. plans to maintain round-the-clock operations as well.

"The best measure (against labor shortages) is to prepare a good working environment," Seven-Eleven Japan President Kazuki Furuya said.

"We're not running short of staff," Furuya said, expressing the company's confidence in securing manpower.

There are disadvantages in closing stores late at night, including the effect on deliveries and work stacking shelves, Furuya said.

Meanwhile, Secoma Co., the operator of Seicomart convenience stores in Hokkaido, northernmost Japan, has only ever had a quarter of its stores operating 24 hours. Seicomart is the largest convenience store chain in Hokkaido in terms of number of stores.

About half of the stores were closed on New Year's Day this year.

Secoma, based in the prefectural capital of Sapporo, has prioritized creating a good working environment and flexible staff schedules to deal with fluctuating demand, a company official said. Jiji Press