Japanese retailer Lawson has revealed its financial results for the first half of 2016, with net sales increasing to JPY1,076bn (US$10.3bn), up 4.5% from previous year, and operating profit dropping by 5% to JPY 39.9bn (US$0.38bn).
Domestic convenience store business
Lawson’s domestic convenience store business posts operating revenue of JPY213bn (US$2.1bn), up 5.4% from previous year. With 203 net new stores opened during the report period, the total number of Lawson stores in Japan has reached 12,083.
The group launched its “1000 Day Action Plan” in the first quarter of this year and it continues to actively refurbish existing stores by installing more new refrigerator and freezer cases and taller product shelving to display the expanded product range.
The group has also been investing in Lawson farms, located in 23 different areas nationwide, which supplies safe fresh fruit and vegetables to Lawson stores and factories that produce and Lawson Select private label products.
Supermarket sales remain robust
The number of directly operated Seijo Ishii stores, a high-end supermarket chain offering quality foods, reached 127 as of the end of August 2016. Sales remain robust, with gross operating revenue reaching JPY 36.1bn (US$0.35bn), up 7.4% from previous fiscal year. Its segment profit has also grown by 13.6% to JPY2.9bn (US$28.2m).
With regards to Overseas Business, Lawson operates stores in China, Thailand, Indonesia, the Philippines, and the United States of America (Hawaii). In China, this year marks its 20th anniversary since it became the first Japanese convenience store to advance into Shanghai. In May 2016, the group made inroads into Wuhan in China’s Hubei Province.
There are 170 new Lawson stores opened outside Japan with 149 in China, 16 in Thailand and 5 in the Philippines. This leads the total number of Lawson stores overseas to 926 as of August 2016.
Check out our latest report on Japanese retailers in Asia HERE