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Why most Japanese convenience stores have an area of 160-200 square meters

Lawson convenience store

Lawson convenience store in Japan

Abstract: There is a phenomenon in convenience stores of Japan, most of which have an area of about 160-200 square meters.So why the standard area of a convenience store is 160-200 square meters?
In Japan, all convenience stores have a feature that most of them have an area of about 160-200 square meters.
Taking the two giants of global convenience stores as an example, Lawson’s “Shop Joining Guide” suggests that the area of stores in mall buildings ‘should be about 140-200 square meters. Outdoor and pavement stores have a shop area of about 200 square meters. The person in charge of the promotion of Lawson stated that the area of 160-200 square meters is the standard area of a convenience store. In addition, in the “Shop Joining Guide” announced by 7 Eleven, the recommended shop area is about 140-200 square meters.
Of course, there are some smaller shops. Take Lawson as an example. The area of “small shops” in commercial buildings and hospitals is 80-140 square meters. Convenience stores located in some stations are even less than 40 square meters.
So why is the standard area of convenience stores 160-200 square meters? In this regard, the reporter interviewed Ikeda Koichiro, who is the store planning department head and responsible for the design and development of Rosen’s standard-type stores.

Experience summary of previous attempts                                                                  Forty years ago, when convenience stores were just beginning to spread, their target audience was mainly young people. Convenience stores on the one hand have the convenience of opening 24 hours; on the other hand, compared with supermarkets, the types of goods in them are more complete. How can we gain an advantage over the competition? At that time, the strategy adopted by convenience stores was to replace more than 80% of products within one year. New items arrive at the store every week. This makes customers feel that they can find new products at the convenience store.
However, this strategy has some flaws. If new products are delivered to the store before the old ones are sold, the store will have to discard some of the old products, which will cause the profit margin of the convenience store to decrease continuously. Because old goods cannot be returned, they must be sold within a certain period of time to reduce waste. In technical terms, it is to reduce waste losses and improve the sales efficiency of shelf goods.

shelf goods

shelf goods

Efforts to improve the sales efficiency of shelf goods
In order to improve the sales efficiency of shelf products, convenience stores have repeatedly attempts. Under normal circumstances, if the store area is large, the number of products will increase accordingly, and the waste loss will increase. In addition, if the store area is too large, cleaning and stocking in the store will take a lot of time, and correspondingly, a large number of clerks will also need to be hired. Therefore, we have explored a reasonable area of convenience stores that minimizes labor costs and improves profitability.

It was through such repeated attempts that a conclusion was reached:the best standard area for convenience stores is between 160-200 square meters. Ikeda also mentioned that the initial store area of the Lawson convenience store was much larger than the standard area. They imitated the supermarket to cook in the store and then sold some home-cooked dishes. However, there are still many customers who say that they can’t buy some things which can be bought in the supermarket at convenience stores, so Lawson keeps shrinking the store area and stipulated the standard area of the store.

Lawson's attemps on store area from original larger to standard

Lawson’s attemps on store area from original larger to standard

Reasons for the existence of different sizes of convenience stores
Why has the standard store area been specified, but we still see some “super-large convenience stores” over 200 square meters?
In this regard, Mr. Ikeda explained that for convenience stores in service areas with a lot of traffic, in order to provide customers with in-store dining venues, we need to continuously expand the store area. “Super-sized convenience stores” have also increased the chance of customers entering the store by providing customers with places to eat and rest. In addition, some convenience stores also have pharmacies and other institutions, which have expanded the store area.
Regarding the question of why some convenience stores have an area of less than 70 square meters, Mr. Ikeda believes that although there is a large passenger flow in places such as stations, underground stations, high-rise buildings, and busy streets, due to the different sizes of leased houses , So some smaller “mini convenience stores” will also be opened. These stores mainly sell products that are particularly popular in the area, such as drinks, bento, sandwiches, etc., in order to improve the efficiency of shelf product sales and earn benefits.
Development direction of future store area
Lawson is currently conducting a series of experiments. For example: increase the variety of goods available in the store and expand the area of the store. In recent years, the target group of convenience stores has gradually changed from young people to elderly and dual-worker families. In the long run, the number of young people will gradually decrease, while the number of elderly and dual-worker families will continue to increase.
In the current situation, convenience stores will replace pharmacies and supermarkets. This strategy is called the “Life Support” program. For example, some stores will continue to improve services to provide customers with better quality tofu, tissue, toilet paper, detergent, vegetables, eggs and other daily necessities. In addition, due to the increase in the number of products, the number of display racks( shelves) in the store will also increase from the previous 40 to about 45.
Ikeda’s planning department is currently conducting research on a new “standard store”. First put new products in the experimental store and change the layout of the original store; then analyze the customer feedback to continuously improve the store style and provide a reference for future store design.
In the future, convenience stores will adapt to changes in consumer demand and change the size and layout of stores. Perhaps in the future, “standard stores” will be larger stores or smaller stores.

(Article in Chinese is from internet, Translated version is by A.R.T)

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