In the coming years, Japan will be saturated with convenience stores as four chains are poised to swiftly increase their outlets.

The country’s leading convenience store chain Seven-Eleven plans to open 1300 stores next fiscal year. Seven & I Holdings chairman Toshifumi Suzuki believes that even if the Japanese market will be saturated with convenience stores, Seven-Eleven can boost sales by winning market share from rival chains.

FamilyMart, Japan’s second largest convenience store chain, also plans to speed up store openings, projecting 800 new stores between 2012 and February 2013. In the past two years, it has opened about 800.

Lawson, a convenience store chain which focuses on fresh products, also plans 800 to 1000 new stores.

“The general trend has become one of (shopping) at a nearby Lawson rather than going to a more distant supermarket,” said Lawson president Takeshi Niinami.

Circle K Sunkus has also revealed plan to add 360 more outlets.

Industry insiders say that additional 50,000 convenience store outlets will make Japan market saturated. However, this does not deter convenience store operators from expanding as they see more consumers buying at the nearest outlet.

The earthquake which took place in March caused panic buying among Japanese consumers. It left an after effect on consumer behavior: to have an adequate supply of daily necessities at home. The result has been a surge in sales among major convenience store chains, opening an opportunity for them to proliferate.

But, according to an opinion voiced by FamilyMart president Junji Ueda, when a saturation point is reached, restructuring of smaller chains is unavoidable. This gives the company a chance to challenge Japan’s leading convenience store chain Seven-Eleven.

Japan has 45,769 convenience store outlets as of the end of March 2011, according to Japan Franchise Association. 

GB