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Japanese C-Store Sales Fell in ‘06 - Likely to Decline in ‘07 - Despite a hike in the number of convenience stores and customers, sales on same-store basis went down in January. But the sales on all-store basis rose 1.8%
Japanese C-Store Sales Fell in ‘06 - Likely to Decline in ‘07

 

PRZOOM - /newswire/ - Delhi, New Delhi, India, 2007/03/29 - Despite a hike in the number of convenience stores and customers, sales on same-store basis went down in January. But the sales on all-store basis rose 1.8%.

   
 
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According to the Japan Franchise Association, convenience stores sales on the basis of same-store declined 0.7% YOY to 528.4 Billion Yen in Jan. 2007, a decline in seventh straight month

On an average, every customer spent 601.2 Yen in convenience stores (C-stores), a fall of 1.1% from 2006 and the second successive monthly reduction. On the other hand, the number of customers increased by 0.4% to around 879 Million, second rise in a row.

The total number of C-stores reached 40,706 in January, up by 1.8% YOY.

The sales on an all-store basis show a different growth chart. Here, sales jumped by 1.8% YOY to 574 Billion Yen, increasing for the fourth month in a row. Average spending by customers was 606.1 Yen, a drop of 0.6% from 2006 and reduction for the second successive month. Customers, on an all-store basis, increased 2.3% to about 947 Million, a rise for the sixth consecutive month.

The Japan Economics Weekly reported that both the Consumer Confidence Survey and the Economy Watcher’s Survey for Jan. ’07 recorded negative growth on YOY basis, indicating that the customer spending will continue to remain low in 2007 also. Inspite of the warm temperature and a rise in the number of consumers, the decline in spending on per-customer basis led to reduced C-stores sales. Customer spending in Gross Domestic Product (GDP) data indicated a sharp recovery in the fourth quarter, but opinions are still divided on the state of consumer spending.

RNCOS report “Asian Convenience Store – Industry Analysis (2005-2009)” lists tough competition, high cost of opening a store, highly saturated market, and slow economic progress as the main challenges for Japanese C-store market.

The market research report provides a rational analysis on the various aspects of the Japanese C-store market, like economic and C-store overview, retail sales, retail store structure, consumer behavior, and growth opportunities in the market. Apart from this, the report throws light on the Asian C-store market with regional segregation; economic, societal, behavioral, and technological effects on the market; future outlook on the market; technological trends in the market; and forces driving growth, among others.

About RNCOS E-Services Pvt Ltd.

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of industry experts who analyze data collected from credible sources. They provide industry insights and analysis that helps corporations to take timely and accurate business decision in today's globally competitive environment.

 
 
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Japanese C-Store Sales Fell in ‘06 - Likely to Decline in ‘07

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