TOKYO, Mar 25 (News On Japan) –
Once a pioneering drive in Japan’s comfort retailer sector, 7-Eleven is now going through a transparent slowdown. Although the corporate launched many groundbreaking companies over time—equivalent to sizzling oden by the register and in-store ATMs—it has failed to provide a significant hit in over a decade.
Sales figures present the shift. While Lawson and HouseholdMart noticed common present retailer gross sales improve by over 3% in 2024, 7-Eleven’s development was simply 0.1%, a pointy drop from 3.6% in 2023. From June to September 2024, the corporate recorded 4 consecutive months of year-on-year declines.
The slowdown has a number of causes. Consumers, going through inflation and rising costs, are more and more price-conscious. Yet 7-Eleven continued pushing high-end merchandise like gourmand meals and premium bento packing containers, a technique that appears to have backfired within the present local weather. Its failure to ship profitable digital or point-reward companies has additional damage its skill to retain youthful consumers. In distinction, rivals like Lawson and HouseholdMart have leveraged widespread applications like Ponta and Rakuten Points to take care of loyalty.
Another main blow got here from the so-called “false-bottom bento” controversy, which went viral on social media. Many customers accused 7-Eleven of utilizing misleading packaging to make bento parts seem bigger than they really had been. President Nagamatsu’s dismissive response—saying “we can’t do such a thing” and asking individuals to submit solely verified information—solely fueled the backlash, with critics saying he appeared out of contact with buyer sentiment.
The firm has since began rolling out extra fairly priced objects, labeled with messages like “Great Value!” in an obvious try to course-correct. This shift away from the high-end “Seven Premium” model suggests a broader rethinking of technique.
The challenges come amid deeper structural modifications. Parent firm Seven & i Holdings just lately determined to spin off Ito-Yokado, signaling the breakup of a significant retail conglomerate. With its future now largely using on the success of its comfort retailer arm in Japan and the U.S., the stress is mounting.
To complicate issues additional, Canada-based comfort retailer operator Alimentation Couche-Tard has renewed its push to amass Seven & i Holdings. While talks have stalled, Couche-Tard has made clear it has no plans to withdraw its bid.
With innovation stagnant, buyer loyalty slipping, and strategic missteps compounding, 7-Eleven finds itself in unfamiliar territory—now not the undisputed chief, however a model at a crossroads.
Source: Kyodo