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The
companies are looking at a range of opportunities beyond
convenience stores, said Koji Takayanagi, previously head of the
food division at trading house Itochu Corp <8001.T>.
FamilyMart UNY Holdings, formed from the merger with Uny Group
to become the second biggest convenience store chain behind
Seven & i Holdings Co <3382.T>, has forecast operating profit to
grow to more than double to 1,000 billion yen ($8.79 billion) in
four years from 412 billion yen in the current fiscal year.
This will be driven by converting its Circle K and Sunkus stores
into more profitable FamilyMart ones, increasing stores sales by
10-15 percent, Takayanagi said.
"There is plenty of room for growth," he said of the company,
which also runs supermarkets and general stores.
While FamilyMart is profitable in Taiwan and China, it is
reviewing its loss-making businesses in Thailand, Vietnam and
Indonesia. "If we can get them to rally we will, but we cannot
continue to pour in resources," Takayanagi said.
While its rival Seven & i Holdings, which owns Japan's largest
convenience store chain 7-Eleven, expands overseas, most
recently in the United States, FamilyMart will remain focused on
the domestic market, Takayanagi said.
"It is easier to achieve results domestically and we know what
we need to do," he said.
Japan's worsening labour shortage, which is leaving convenience
stores scrambling to find workers to man tills and stack
shelves, will force companies to adapt and innovate, he said.
Even the country's declining birthrate and aging population does
not phase Takayanagi.
"Even if the amount an individual eats declines... if we offer
items with added value people will buy them."
(Reporting by Sam Nussey and Ritsuko Shimizu, editing by Louise
Heavens)
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