Seven-Eleven Japan aiming to mark sales growth for 70 months in row

January 2, 2018

Tokyo- Leading Japanese convenience store operator Seven-Eleven Japan Co. hopes that its same-store sales will grow for 70 months in a row on a year-on-year basis, its president, Kazuki Furuya, has said in a recent interview.

"Our next goal is to achieve a 70-month rising streak," he said.

In October last year, the firm's same-store sales fell 0.5 percent from a year before, logging the first decline in 63 months, as the number of customers dropped due mainly to the approaches of two typhoons to Japan.

Furuya underlined the company's plan to continue expanding its store network aggressively, saying, "We'll open some 1,600 stores annually in the next three years."

Convenience store operators are in a tough race for customers as the total number of outlets in Japan has reached some 60,000. In addition, the industry faces increasingly severe competition with drug stores and other retailers.

"The number (of stores) doesn't matter if we raise the quality," he said, underscoring Seven-Eleven Japan's resolve to beat rivals by continuing to revamp its products, including "bento" boxed meals and "sozai" prepared foods, and improve its services.

While suggesting that the company is not suffering a store staff shortage, Furuya said that creating a better environment for its existing workers is "the most effective measure" to help the firm maintain sufficient staff.

If the work environment is improved, they will "bring new workers," he said.

Some convenience store chains are moving to review around-the-clock operations in the face of staff shortages.

But Furuya emphasized that convenience stores are "convenient" because they are open 24 hours a day. He said: "Sales would fall by 30 percent if we close at night. We won't stop (around-the-clock operations)."

Seven-Eleven Japan substantially changed its store layout in 2017 to expand the sales space for bento, sozai and frozen foods. As a result, the number of female customers has increased, Furuya said, adding, "We'll change the store layout to the new one for all of our outlets in 10 years or so." Jiji Press