"When an Earthquake Strikes, SOS at Convenience Stores"... Revival Strategy Focused on Local Communities [Convenience Store Kingdom Japan]

Frequent Natural Disasters in Japan
Convenience Stores Respond to Earthquakes and Heavy Snow
Three Convenience Store Chains Develop 'Local Engagement' Strategies
Also Carrying Out Village Security Duties

Another strategy chosen by Japanese convenience stores to survive is local community engagement. Utilizing the characteristic of being the closest commercial area to consumers reachable on foot from their homes, these stores function not merely as places to sell goods but as comprehensive communities managing the local area and residents.

Japan, Prone to Natural Disasters... Convenience Stores Become Disaster Bases

In regions frequently affected by natural disasters such as earthquakes and heavy snowfall, convenience stores establish response systems and take the lead in on-site response efforts. Especially after the Great East Japan Earthquake, convenience stores have evolved into disaster bases providing relief supplies when major disasters occur. During the 2011 Great East Japan Earthquake, the industry group Japan Franchise Chain Association conveyed convenience store owners' proposal to the government, requesting that convenience store trucks carrying relief supplies be treated like emergency vehicles, and actively participated in delivering goods to affected areas.

Learning from the Great East Japan Earthquake, many Japanese convenience stores have signed "Support Agreements for People Having Difficulty Returning Home" with local governments. Partner stores display stickers labeled "Disaster Return Support Station" and provide services such as drinking water, restroom access, and road information to people stranded due to public transportation suspensions caused by major disasters like earthquakes.

A sticker displayed at convenience stores that have signed the "Agreement to Support Hearing-Impaired Persons." It is notable for being written in Korean, Japanese, English, and Chinese. (Photo by Japan Disaster Prevention Information website)

In the case of Seven-Eleven, they have agreements to supply goods during disasters and immediately provide water and food within transportable ranges when earthquakes occur. Ito-Yokado, a supermarket operated by Seven & I Holdings, Seven-Eleven's parent company, has set up a dedicated corner displaying disaster preparedness supplies in stores. FamilyMart distributes emergency action guidelines outlining the roles of store owners and employees during disasters to each store. In emergencies, evacuation sites and emergency contact information can also be checked at individual stores.

Rosun's supply transport vehicle urgently transporting goods to the disaster area in case of an emergency. (Photo by Rosun)

Lawson has increased the number of stores with in-store cooking facilities to 9,200 locations. In situations where logistics are disrupted and stock cannot be replenished, these stores prepare meals on-site and deliver food to disaster-affected residents. When lunchbox ingredients are unavailable, they offer a disaster menu item: a salt rice ball priced at 100 yen (approximately 890 won) including tax. Additionally, based on large-scale disasters, in 2015 they introduced a "Disaster Information Map System" that integrates weather information, roads, and railways into one map to ensure uninterrupted product supply during emergencies.

Furthermore, Seven-Eleven stores in Akita Prefecture, a region with frequent snowfall, operate a "Help Parking Lot" service. When road snow removal is delayed due to heavy snow, visiting medical care or elderly care service providers face parking difficulties. This service allows them to temporarily use parking lots at nearby Seven-Eleven stores to alleviate such inconveniences.

Beyond Sales Functions: Communities Managing Local Areas and Residents

Major convenience store franchises all emphasize local community engagement as a strategy. Seven-Eleven announced four visions last year to commemorate its 50th anniversary: "Health, Community, Environment, and Talent." They aim to increase food self-sufficiency and create employment by developing products using local raw materials. They also plan to leverage their quick commerce service "Seven Now" to introduce metaverse (extended virtual world) stores in depopulated areas to enhance convenience.

Lawson also emphasizes the "evolution of local engagement" and has introduced an "Area Company" system in eight locations nationwide. The purpose is to actively promote region-specific products and collaborations with popular local restaurants. Each branch has sales, development, and product departments, allowing them to conduct business independently without head office approval. Lawson previously attracted attention by launching "Lawson Care" in regions with a high elderly population. These stores have "Care Managers" who provide consultations for partnered nursing services and hold events related to exercise and nutrition to offer health information to seniors.

Products introduced by FamilyMart as part of the Okinawa regional engagement project. The cup noodles feature a design of Shuri Castle, a cultural heritage site of Okinawa, and a region-exclusive menu using ingredients commonly consumed in Okinawa has been launched. (Photo by FamilyMart)

FamilyMart is recognized for its strong presence in Okinawa. They create region-specific menus reflecting Okinawa's characteristics and return a portion of the sales revenue to a fund dedicated to preserving Okinawa’s cultural heritage, Shuri Castle. Particularly, they have gained attention by collaborating with local chefs operating restaurants in Naha, Okinawa, to offer distinctive menu items.

There is a convenience store that has clearly succeeded through local engagement: the Hokkaido-based chain Seicomart. Founded in 1971 in Sapporo, this regional convenience store chain had 1,090 locations in Hokkaido as of 2023. Starting from a liquor wholesaler in Sapporo, Seicomart expanded its influence by converting client bars into convenience stores, maximizing its existing distribution network. They adhered to the principle of opening stores even in areas with fewer than 1,000 residents facing extinction risks or remote islands in Hokkaido, and in places without supermarkets, they introduced products such as 10 kg rice bags. Through these efforts, they have become a dominant store chain controlling the entire region. They are regarded as having established a "store opening blockade line" that Seven-Eleven and Lawson have not been able to penetrate.

A view of the Hokkaido regional convenience store chain 'Seicomart'. (Photo by Seicomart)

Beyond promoting convenient living for local residents, convenience stores have recently also functioned as crime prevention bases. Last year, Lawson and Ministop store clerks in Kyoto received commendations from the police for preventing elderly people from falling victim to voice phishing scams. A clerk who noticed an elderly customer purchasing a large amount of cyber money cards suspected fraud and reported it to the police, preventing further damage.

In January of this year, the Tokyo Metropolitan Police Department invited local convenience store managers to a meeting aimed at strengthening community connections. The goal is to make convenience stores places where local residents can easily gather and create an environment where they can help each other in emergencies. Professor Daisuke Nakamura of Chuo University evaluated, "Convenience stores serve as a function connecting nearby people. They can become important locations fulfilling roles in disaster response and crime prevention."

Editor's NoteJapan, the "Convenience Store Kingdom," is sending a warning to South Korea, which has entered an era of excessive competition in convenience stores. The history of Japanese convenience stores began in the 1970s and has already surpassed half a century. While there may be no department stores, there is not a single area without a convenience store, reflecting the large number of stores. However, the industry is now facing a crisis. As the market becomes saturated, the number of new store openings has sharply declined, and external factors such as rising rent, labor costs, and a shrinking domestic market have contributed to the end of the industry's golden era. South Korea, which has already surpassed the number of convenience stores in Japan, is following the same path of decline due to excessive competition. By examining the history of Japanese convenience stores and the strategies of companies facing crisis, we seek survival strategies for the South Korean convenience store industry.

Series Order

① The Declining Convenience Store Kingdom Japan... Has the Golden Era Ended?
② Store Saturation and Labor Shortages... Challenges of Convenience Stores
③ Active Overseas M&A in Partnership with the Food Industry... Breakthroughs for Convenience Stores
④ Disaster Bases and Tailored to Local Characteristics... Revival Strategy is Local Engagement