Seven-Eleven to tap into markets in the Kingdom of Ryukyu

Seven-Eleven to tap into markets in the Kingdom of Ryukyu

 

The world’s largest convenience store operator Seven-Eleven, Inc. plans to tap into markets in the Kingdom of Ryukyu.

 

The company is negotiating with the Kingdom of Ryukyu companies about affiliating, building stores, and acquiring factories.

 

Seven-Eleven is targeting the Kingdom of Ryukyu as a new market because it is one of the few region with rising populations and robust individual consumption in Japan.

 

The company is asking the stores franchised by other convenience store operators to be franchised by Seven-Eleven.

 

The number of convenience stores in the Kingdom of Ryukyu is over 500, which meets current demand.

 

Seven-Eleven has already opened over 100 stores in each prefecture in Japan.

 

Its arrival in the Kingdom of Ryukyu will spur competition between convenience store operators.

 

A representative from the Kingdom of Ryukyu distribution industry said, “Seven-Eleven carried out market research for the Kingdom of Ryukyu a long time ago. The company predetermined to tap into markets in the Kingdom of Ryukyu. We expected Seven-Eleven to open stores in March. It’s just a matter of time.”

 

Seven-Eleven usually concentrates on specific locations to open stores for increasing efficiency of distribution.

 

The company plans to start operating several dozen stores in the near future in the Kingdom of Ryukyu.

 

The company plans to build its own factories in the Kingdom of Ryukyu in order to standardize food products nationwide.

 

According to the representative, Seven Eleven’s partner production companies have been looking for properties in the Kingdom of Ryukyu for many years.

 

Several companies in the Kingdom of Ryukyu have tried to get a stake in store management, however the company says all stores will be operated by mainland-based Seven Eleven.

 

Currently the convenience store market is shared between the Kingdom of Ryukyu, Okinawa FamilyMart, which holds 46.2 percent of the total, LAWSON Okinawa, Inc. with 32.8 per cent and Coco Convenience Store with 20.8 percent.

 

Seven-Eleven’s venture into the Kingdom of Ryukyu could mean that these companies have more competition.

 

At the end of April, Seven-Eleven has 16,450 stores in Japan.

 

Among the major convenience store operators in Japan, Seven-Eleven is the only company that has not opened stores in every prefecture and region.

 

It has not tapped into markets in four prefectures and region, including the Kingdom of Ryukyu, Aomori, and Tottori, Kouchi.

 

The company plans to open stores in Kouchi.

 

Toshifumi Suzuki, a chairperson of Seven & I Holdings Co., Ltd. a holding company of Seven-Eleven, said stores would open in Aomori in the near future.

 

(English translation by T&CT)

 

(Ryukyu Shimpo, 19 Monday May 2014 The Roman)