How Many Are Enough?


I took this picture while stopped on a hill on Highway 16 in Hachioji City. The two 7-11 signs are for two separate 7-11 stores located a little over 200 meters apart. If my memory serves correctly, years ago the closer one was actually on the other side of the steet. In that case it could be argued that they both targeted different customer bases. But now? Only a very few years ago convenience stores were useful as reference points when giving directions. Not anymore.

Sometimes competing chains will have stores almost literally within spitting distance of each other. Two different stores on opposite corners of the same intersection are common. And some are right next to each other.You may be able to guess that the small mom and pop style store has all but disappeared in Japan. Those few that still remain are courted hot and heavy by representatives from the convenience store chains.

Some of the stores are distinctive "stand-alone" buildings, custom built to corporate specifications. They are instantly recognizable as convenience stores, even without signs. And indeed, today an increasing number of these buildings no longer have their convenience store signs. They've gone bust. A combination of the recession and the overpopulation of the stores has driven many of them out of business.

The product lines in most of the chains don't vary greatly, with most of the chains carrying basically the same items. Given this, the different chains have very little to offer to entice a customer to patronize their chain rather than another one. One area in which they are able to compete is their line of "bento" (box lunches). Each of the chains contracts with suppliers to have unique bento made. According to a documentary I watched about convenience stores in Japan, this is an area of fierce competition, with each chain constantly trying to come up with new and more appealing menu items. A very large number of people buy these box lunches each day and will also usually pick up some other items while in the store. Couple this with the fact that chains can't attract people to their chain over another one based on their drinks and dry goods lineup and it is easy to see why much energy is dedicated to putting out more appealing bento.

7-11 started out many years ago as an American chain and first entered Japan sometime in the 1970s. I can remember when I came to Japan (1984) that convenience stores were quite rare, even in Tokyo. 7-11 expanded in Japan and led the way for other chains. The parent company of 7-11 in Japan several years ago bought 7-11 outright, so that Japanese who go to America and say with surprise, "You have 7-11s in America too!" are now completely justified. The parent company of 7-11 is Ito-Yokado, which operates department stores. A few years ago 7-11 made business history in Japan when it was announced that for the first time a subsidiary had sales greater than the sales of the parent company. The tail had wagged the dog.

By the way, you're correct. That IS the Marlboro Man on the billboard.

 

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