Trump threatens 50% tariffs on Brazil if it doesn't stop the Bolsonaro 'witch hunt' trial    Trump praises 'good English' of Liberian president, prompting criticism across Africa    Saudi, Hungarian defense ministers discuss military ties    Al-Rajhi: Cabinet's decision is supportive to most vulnerable groups    King Salman appoints Dr. Majid Al-Fayyad as Royal Court advisor    Alkhorayef emphasizes Saudi Arabia's growing role as global industrial investment hub    Saudi Arabia adopts World Drowning Prevention Day as national health priority    GACA imposes SR2.8 million in fines for 87 civil aviation violations in Q2 2025    Desperate Gaza doctors cram several babies into one incubator as fuel crisis reaches critical point    Total e-messages sent to parties in lawsuits reach over 11.8 million during first half of 2025    3 arrested in assault case in Riyadh    New Property Ownership Law will take into effect in January 2026 Al-Hogail thanks King and Crown Prince for the updated law    HONOR returns to Esports World Cup as Official Smartphone Partner for 2025 The renewed commitment will see HONOR elevate mobile esports competition with cutting-edge AI technologies and industry-leading hardware    Riot Games responds to match-fixing allegations in VALORANT    BLAST responds to BESTIA Visa controversy ahead of CS2 Austin major    Christophe Galtier named NEOM SC head coach ahead of historic Saudi Pro League debut    Michael Madsen, actor of 'Kill Bill' and 'Reservoir Dogs' fame, dead at 67    BTS are back: K-pop band confirm new album and tour    Michelin Guide launches in Saudi Arabia with phased rollout in 2025    'How fragile we are': Roskilde Festival tragedy remembered 25 years on    Sholay: Bollywood epic roars back to big screen after 50 years with new ending    Ministry launches online booking for slaughterhouses on eve of Eid Al-Adha    Shah Rukh Khan makes Met Gala debut in Sabyasachi    Pakistani star's Bollywood return excites fans and riles far right    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Closing time? Japan convenience stores pressed to end 24-7 model amid labour crunch
Published in The Saudi Gazette on 21 - 03 - 2019

Japan's 24-hour convenience stores are struggling to stay open around the clock as an industry that has continually expanded now finds itself at the sharp end of a labor shortage.
Franchise owners, some of whom were forced to work amid massive snowstorms or in the wake of a family death, have launched a campaign to persuade industry leader 7-Eleven to allow stores to close earlier.
Although the debate has focused on their plight, it has also raised doubts over the future of a $100 billion industry that faces an ageing population, slow economic growth and new competitors such as Amazon Prime.
"The question is, how much demand is there for 24-hour service in an age when online shopping is expanding?" said Takayuki Kurabayashi, a Nomura Research Institute partner who specializes in consulting for the retail industry.
Japanese convenience stores began expanding in the 1970s as their 24-hour accessibility proved a perfect match with the country's dense population and late-night work culture.
The brightly lit stores, which locals call "combini," are ubiquitous and an essential part of modern Japanese life, offering everything from neckties to packaged "bento" lunches for city workers.
Rural Japanese rely on the stores for parcel and ATM services, or even as lifelines during disasters such as earthquakes.
The franchise system promoted a nationwide expansion that took the total number of stores to roughly 58,000 last year, a majority operated by the big three: 7-Eleven, originating in the US but now Japanese-owned; FamilyMart, UNY Holdings' convenience store arm; and Lawson, a subsidiary of trading house Mitsubishi Corp.
For years, the franchise model shielded operations from the direct effects of Japan's labor crunch. But now, the tightest labor market more than 40 years is hurting store owners, who pay salaries after handing over royalty fees.
A union of convenience store owners said they were finding it increasingly hard to hire enough employees. Many owners said they worked long hours themselves to keep stores open 24 hours — a requirement in most franchise contracts.
"At the time of the agreement, we could not foresee the current labor shortage or spike in minimum wages," said Mitoshi Matsumoto, a union member who owns a 7-Eleven store in Osaka, referring to the deal he and his wife signed with the company.
Struggling to keep the store running after his wife's death last year, he began closing it for a few hours at night, and was threatened with a fine.
His pleas to management and lawmakers drew widespread sympathy in a country in which "work-life balance" has become a buzzword and employers have come under fire for cases of death by overwork.
Even the pro-business Nikkei newspaper wrote an editorial saying stores should be allowed reasonable working hours even if consumers suffer slight inconveniences.
Amid such pressure, the company said that on Thursday, it would begin testing shorter hours at 10 of its more than 20,700 stores. It emphasized that the change was experimental and that it was not yet altering its 24-7 format.
Roy Larke, who analyzes Japan's retail industry as editor of JapanConsuming.com, said he sees the sector as saturated and consolidation inevitable.
"We do have too many convenience stores now, sometimes literally next door to each other. There are probably around 10 percent too many," he said.
Katsuhiko Shimizu, spokesman for Seven & i Holdings which owns 7-Eleven and general merchandise chain Ito-Yokado, disagreed.
"There's room for innovation," he said, citing the company's efforts to incorporate more automation and artificial intelligence in processes ranging from stocking to check-out.
Chains are also testing new formats such as outlets that combine drugstores, dry cleaners and even gyms. FamilyMart has opened some such stores with the country's largest discount chain, Don Quijote, to inject excitement.
Analysts warn against underestimating a sector known for maintaining high margins and rarely discounting, helped by constant product renewals and staples like 100-yen (90-cent) coffees.
They also say it's too early to predict the outcome of Japan's online grocery delivery race, which is only getting started.
Although Amazon's grocery and same-day delivery services are considered threats, convenience stores are also launching online platforms; their affiliations with traditional supermarkets and logistics networks are seen as advantages.
"It's not clear-cut whether Amazon will be overwhelmingly powerful here," said Larke. "Especially in food, it doesn't have the game to itself."
Convenience stores, like other Japanese businesses, have also been expanding abroad. But Nomura Research's Kurabayashi warned that those foreign markets, including China, were also ageing.
"What's happening in Japan is eventually going to happen elsewhere in Asia," he said. "It's just a matter of time." — Reuters


Clic here to read the story from its source.