Japan: 7-Eleven and FamilyMart strengthening omnichannel

Date : 04 January 2021

Charles Chan

Senior Retail Analyst

We round up the latest developments from Japan, focusing on 7-Eleven and FamilyMart.

7&i focusing on driving omnichannel sales

7-Eleven Japan’s operating model focuses on market concentration, being close and convenient to its customers. The retailer has been, however, in recent years, shifting its strategy, slowing down expansion and strengthening its delivery and pick-up services. This notion has been accelerated by COVID-19, with proximity to customers previously key to trading successfully becoming a less significant factor as more consumers work remotely.

7-Eleven currently offers three main ways to receive their products shopping online: home delivery, collection at a 7-Eleven store or pick-up from a locker. For home delivery, the retailer may introduce a joint logistics system delivering merchandise from different stores owned by 7&i, e.g. 7-Eleven, restaurant chain Denny's, and supermarket chain York. This will offer new insights on how many orders they have in one area and potentially allow it to introduce dynamic pricing to offer reduced delivery prices when there is lower demand. The retailer may also install lockers in locations such as in offices, nurseries and apartment buildings to offer further convenience.

Ryuichi Isaka, Seven and i holdings’ President, said, “What we are considering now is to build up a system [where] consumers can choose where and how they pick up merchandise they bought online."

FamilyMart to increase Amazon Hub lockers

FamilyMart is planning to increase the number of its outlets with Amazon Hub parcel lockers to about 350 by February 2022. FamilyMart started installing Amazon Hub lockers at its stores in 2019. It is currently available at around 50 stores for customers to pick up items they purchase on Amazon Japan.

Retail Analysis subscribers can read more about Amazon in Asia here.