Japan’s ‘Big 3’ convenience stores up ante

With the merger of FamilyMart Co and Uny Group Holdings Co on September 1, the integrated convenience store is now competing as one of the “big three” alongside Seven-Eleven Japan Co, Japan’s largest chain, and Lawson Inc.
FamilyMart, the third largest chain, integrated its business with fourth-ranked Circle K Sunkus Co, operated by Uny. It will have about 18,100 outlets when the Circle K and Sunkus chains are gradually converted into FamilyMart stores by February 2019. This is close to the 19,000 outlets currently operated by the Seven-Eleven chain.
Attention is focused on what actions the three chains will take to ensure survival as they square off in the battlefield.
FamilyMart President Takashi Sawada said that by combining the stores run by the FamilyMart, Circle K and Sunkus chains, “The total number of outlets is the largest in the Tokyo, Osaka and Nagoya areas. We will try to make our stores better meet customers’ expectations.” He made the remark in a convenience store in Chuo Ward, Tokyo, which had changed its franchise store name from Circle K to FamilyMart.
As a first step, FamilyMart will speed up conversion of franchised stores into its brand name in its business strongholds in metropolitan areas.
Through the management integration, FamilyMart will supply items that proved popular in the three individual chains.
By utilising the expertise of Uny Group, a general merchandise supermarket store chain under the holding company, the FamilyMart chain will increase the variety of its prepared and perishable foods line-ups.
The Lawson chain is lagging in terms of numbers of convenience stores, but it has strengthened business ties with midsize convenience store chains. For example, Lawson has extended capital to Three F Co, which operates stores mainly in Kanagawa Prefecture, and Poplar Co, which operates mainly in the Chugoku region.
Lawson and Three F established a joint venture firm on September 1. They will change the franchise name of about 90 stores in Chiba and Saitama prefectures into Lawson Three F by November.
It remains to be seen whether the Lawson chain will try to expand its business by realigning with other convenience store chains.
Another question is how will the Lawson chain collaborate with Mitsubishi Corp, Lawson’s largest shareholder, to enter the markets of other countries.
Seven-Eleven Japan has seen brisk business results, with sales up to July this year marking year-on-year rises for 48 months in a row. Its bento meals and prepared foods are popular with elderly people and working women.