Convenience store operators Lawson and FamilyMart posted higher consolidated net profits for their fiscal first half ended in August, driven by strong sales of store-brand products, as consumers have been struggling with higher prices.
Lawson reported record operating revenue and net profit for the first half as its customer number and per-customer revenue grew after the company beefed up its sales promotion and home delivery services.
Lawson’s operating revenue rose 4.9% from a year before to ¥572.1 billion, and its net profit grew 8% to ¥34.9 billion.
FamilyMart’s net profit nearly doubled to ¥65.4 billion, though its operating revenue fell 1.4% to ¥257.5 billion. Its original clothing and food products sold well. In addition, the company booked a special profit from the reorganization of its China business.
Seven & I Holdings’ 7-Eleven convenience store operations were sluggish both in Japan and abroad in the six months ended in August.
“We haven’t been able to meet customer expectations. Our ability to respond to changes is weakening,” Seven & I CEO Ryuichi Isaka said.
Seven & I’s net profit dropped 34.9% to ¥52.2 billion.
On Thursday, the company announced plans to separate its supermarket and restaurant operations at an early date to focus on the convenience store business.
Seven & I seeks to boost its corporate value to counter a ¥7 trillion takeover proposal from Canadian convenience store operator Alimentation Couche-Tard.