FamilyMart UNY may sell HK stores

Date : 06 December 2017

FamilyMart UNY may sell its operations in Hong Kong for reportedly US$100 mn (HK$781 mn).

Post-merger strategy different between formats

Since the merger of FamilyMart and UNY in September 2016, FamilyMart has moved quickly to convert Circle K and Sunkus convenience stores in Japan. The company is still on track to complete full integration by August 31st 2018. Raising average daily sales per store in convenience stores and optimising the proximity of stores and have been important focus areas for the retailer.

For their acquired hypermarkets, however, the retailer's strategy is slightly different. At home, the business is collaborating with Don Quijote to bolster and re-energise its merchandising operations. Of their 216 stores in Japan, around half will eventually be rebranded and renovated, with up to 20 stores a year converted to Don Quijote outlets. Unprofitable stores are also under review for closure. In Hong Kong, where UNY had three stores predominately selling general merchandise (APITA, PIAGO and UNY banners), FamilyMart UNY appears to be turning to a more defensive growth strategy, with the possibility of withdrawing altogether.

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