Week 7: The Opening of New Convenience Store

 Do you know what kind of place a convenience store is built in? It is the place which people often gather in and pass if I easily explain the place. However, there will be already the convenience store in the place where we can understand it at first sight. But the convenience stores continue still increasing. Why is it? In this topic, I explain the reason and the expense that it costs to build the convenience store.
 First, I mention the expense that it costs to build the convenience store. As building specifications, steel frame one-story house, roof shingle board, outer wall ALC37 or fire prevention siding t16 degree building body price 300000-350000 yen/tsubo. In addition, the space necessary to build the convenience store is approximately 45 tsubos. And the interior decoration cost of construction is 8500000-13000000 yen. As can be seen, it is considerably high for this expense. This becomes the serious problem recently in a major convenience store company. However, I find the solution to problem and carry out it each company. For example, major convenience stores including Family Mart developed the lightweight store which adopted a new method of construction. In addition, they unify standards and supply material in large quantities and I make a wall with a firm panel and reduce quantity of steel frame. And term of works shortens and the cost lets them decrease by 1-3 percent in this way. There are various measures and is troubled how the convenience store company handles this problem.
 Next, I want to mention the reason, but I couldn't find the reason. So I mention my thought what kind of place build the convenience store in. At first, I thought that there are convenience stores in main line roadsides, stations, bus stops and near the school or company. However, as mention at the top, there are already convenience stores in the places. And convenience stores crowd in the place with much such pedestrian traffic now. By the way, there is almost the convenience store within the range of a 10-minute walk. In addition, it is the small commercial domain for business condition that assumes inhabitants and a person of Japanese yen of duty a target visitor in a radius of approximately 800 meters around a store. I think that there will not be the solution when in such a situation unless each convenience store has each characteristic to increase sales in that. However, there is the person who studies it mathematically whether sales increase if they build the convenience store among the researcher of a convenience store. I do not think it to be effective. Because I do not think that sales of convenience stores increase by choosing a place with much more pedestrian traffic from a place with much pedestrian traffic. After all there is it how many going too far in saying have a characteristic arousing the interest of people in other convenience stores.
 I want to sorry for about this topic. I was not able to examine it in my inadequacy properly.In this topic, I mentioned almost my thought. However, there would be many points which I sympathize with. I am satisfied with only as for it. Next blog is 'the comparison of Japanese convenience store and others'. Don't miss it!

Week 6: Business Strategies

 Why do you think that convenience store business raises sales or maintains them without it cutting down on sales so far? Do you think that convenience stores only open without thinking? It will be surely natural that you think that convenience store business can maintain the sales because there is not a thing replacing the convenience store even if you think about nothing. But you may expect that sales fall under the influence of East Japan great earthquake disaster and economic recession. However, why do sales not fall very much? The reason are strategies of the convenience store business. On this topic I explain them.

I give strategies performed in the convenience store industry now.

①Reinforcement of the coffee
The convenience stores of the form to order coffee directly at a counter increase recently. We call this form "counter coffee". In addition, Ministop and Circle K Sunkus take the self-method of coffee and Lawson take the method of salesclerks selling. But Seven-Eleven and Family Mart have not yet performed it, they are also going to lay emphasis on coffee sale with each style.

②Japanese sweet reinforcement
The kind of the Japanese sweet increase recently in all convenience stores. I try to give just one case.
(i)Lawson 
The strategy of Lawson is that size of sweet is small. The reason is the result that met the demand of women and seniors that they want to eat a good thing even a little.
ex) ・straight pancake stuffed with bean jam
      ・Pure fresh cream Daifuku
(ii)Seven-Eleven
The strategy of Seven-Eleven is that sauce and the bean jam which were particular about joint development with Yamazaki Baking.
ex)・skewer dumpling sauce
(iii)Family Mart
The strategy of Family Mart is pursuit of healthy. In detail, it is making the product which we can keep with refrigeration to be able to start enough sweetness even if there is little sugar whereas we often use sugar a little too much because a Japanese sweet of the normal temperature prevents quality.
ex)・straight pancake stuffed with bean jam of an adzuki bean and the cream

(iv)Ministop
The strategy of Ministop is similar to it of Family Mart. So it is expands the Japanese sweet product of the refrigeration product.

③Differentiation
(i)Lawson
The strategy presents Lawson Store 100 and Lawson Store + is to have perishables, a side dish or daily necessities.
(ii)Seven- Eleven
The strategies are start of the door-to-door parcel delivery service, reinforcement of the seven premium, reinforcement of the factory for exclusive use of a thing of private-brand products development, ATM commission revenue of Seven Bank which is a finance section and intensive branch to the metropolitan area.
(iii)Family Mart
The strategies are cooperation of the T reward card with TSUTAYA and reducing it to private brand ratio 50%.
(iv)Ministop
The strategy is "The combo store" where a convenience store and the fast food shop which could eat in a shop fused.

 There is the strategy that convenience store business goes for as well as the thing which I introduced in this topic still more. However, I think that you was able to understand strategies of the convenience store business a little.  Next blog is "The opening of new stores". Don't miss it!

Week 5: Convenience Store vs. Supermarket

 Which do you use more, convenience stores or supermarkets. In addition, when do you use convenience stores and supermarket. I think that when I wanted to eat light thing(snacks, drinks, chicken and so on) and I needed something in a hurry, I go to convenience stores. On the other hand, I think that when I want to buy the materials of the meal(fresh vegetables, meats, eggs, fish and so on) for a day or a week, I go to supermarkets. You should know that your parents go to supermarkets to buy the materials of the meal. On this topic I explain the difference between convenience store and supermarket.
 First, I note the definition of the supermarket.
"Supermarket is the retail business condition that was able to buy food or daily necessities used frequently by self-service in a short time."
In addition, I confirm the definition of the convenience store. There were three definitions, but I note main one.
" The convenience store is a store treating food and using self-service method. In addition, its area is 20㎡〜250㎡ and its business hours are more than 14 hours. "
When I compare these two definitions, I notice various things.
・The business minimum time of the convenience store is decided, but it of the supermarket is not.
・The things which is sold are high-frequency things or not things.
・The sales floor area of the convenience store is decided, but it of the supermarket is not.
In addition, there are things which are sold each. For example, supermarkets sell meat, fish, egg and vegetables, but convenience stores don't. On the other hand, convenience stores sell magazines, but supermarkets don't.
These are main differences between convenience store and supermarket. Did you know them? Would you accord with the difference that you thought about?
 Next, please remember the first question. "Which do you use more, convenience stores or supermarkets?" I use more convenience stores than supermarkets. I think that most modern youths will be the same as me.(but persons living as one) I think that this is because it does not cook by oneself. In addition, my mother probably use more supermarkets than convenience stores. I heard why you did not use convenience stores and she answered 'Because meat and fish are not sold, and  there are few products and price is high.' Actually there are a few convenience stores which sell vegetables. I thought that the supermarket was not necessary in future if not only vegetables but also meat and fish came to be sold in all convenience stores. But I noticed my thought having been wrong when I heard its reason. The convenience store cannot get the customer of the supermarket as far as the sales floor area is decided. So if the definition of the convenience store does not change, supermarkets do not disappear. On the other hand, because supermarkets satisfies demand of all people, convenience stores does not disappear. This is because business hours are longer the convenience store and there is much number of stores. In short, neither of the convenience store and the supermarket can disappear.
 Might I understand it? Next blog is 'Business Strategies'. Don't miss it!

Week 4: The Sale of Convenience Store

 Do you know sales of Japanese convenience stores of the day, one week and one year? You will think that the present age when there are convenience stores anywhere, the sales of them rise whenever we pass through a year. But it is wrong. Now, the sales decrease little by little. On this topic, I explain its reason. In addition, I compare sales of Japanese major convenience stores (Seven-Eleven, Lawson, Family mart, Circle K Sunkus)
 First, I describe sales of Japanese convenience stores from 2008 through 2012.
2008....... about 8,151,400 million yen
2009....... about 8,318,600 million yen
2010....... about 7,394,700 million yen
2011....... about 8,676,900 million yen
You can understand that the convenience store industry do not increase sales smoothly when you watch this. Why would such a numerical variation happen? I explain it in turn. The sales of 2008 became 7.1% of large increase compared with the previous fiscal year. There are main two reasons. First is having increased that the convenience store which I could buy in within easy reach of in small quantities was chosen by a surge of the life defense awareness of consumers. Second is increase of the number of the visitors by "taspo effect". You will not understand the second reason well. So when I say in detail, the people who do not have taspo cannot but purchase cigarettes because they cannot buy it with a vending machine. It means that the number of the visitors to the convenience store increases necessarily. On the other hand, the sales of 2010 decreased sharply than last year. This reason is the low-priced product intention of consumers by the protracted economy slump, a drop of the consumption. And the sales of 2011 became 8.2% of large increase compared with previous fiscal year. The sales were affected by the East Japan great earthquake disaster, and a bulk buying of daily necessities and the convenience food occurred although exiting shop visit customer traffic adversely affected it only in March, and the sales amount found a plus by the visit visitors who came having increased to buy a side dish, perishables for the convenience store. In this way, the sales of the convenience store are connected directly with movement in the world. If the world turns big, the sales of the convenience store turn big with it.
 In addition, I explain sales of Japanese major convenience stores(Seven-Eleven, Lawson, Family mart, Circle K Thanks). The order of the sales of these convenience stores is as follows.

1, Seven-Eleven    2, Lawson    3, Family Mart     4, Circle K Sunkus

This order has not been changing for a long time. I thought that the Circle K Sunkus did not have much number of many stores, but sales were unexpectedly bigger than most, Ministop. This was surprised most. In addition, in late years Family Mart shows big growth. It is a big factor that am/pm finally merged with Family Mart. And the share of the whole industry by these four convenience stores tends to spread sequentially.
 Today's blog to here. The next blog is the convenience store vs. supermarket. Don't miss it!