TOKYO—The Chinese government has announced the goal of doubling the number of convenience stores nationwide to 300,000 by 2022. As a result, Japanese convenience retailer Lawson plans to expand its presence in China from the current 3,000 stores to about 6,000 stores by 2022, reports PetrolPlaza.com. The company hopes to have 10,000 locations in China within five years.
A chain of 10,000 stores could “potentially earn an annual operating profit of over 10 billion yen ($95 million)," according to a Lawson executive. Currently, the company has 14,000 stores in Japan, as well as stores in Indonesia, the Philippines and Thailand.
Lawson entered China in 1996 and has used that market to pilot new digital innovations. China is seen as a country that will be crucial in sustaining Lawson’s future growth and earnings amid a slowdown in Japan.
The company formerly managed most locations, but in 2014, it began to actively sign franchise agreements.
Convenience store retailers looking for ways to innovate and expand their businesses should be sure to attend the NACS Crack the Code Experience, which includes must-see education sessions, such as “Open the Door to Innovation” and “Making “Cents” of Your Data.” You can still register today and take part in these and all of the many virtual sessions, networking opportunities and online showrooms. Be sure to register!