The analysis and suggestion in improving the sales of FamilyMart

As we know, the sales of convenience store is depend on the three important

factors, they are the products, store operation and the store development. The

product factor should be focused on the SKU items and price, the store operation is

linked with the customer service and logistics management, the store development is

focus on the location and competitors.

Normally, in order to improve the sales, more stores should be opened in the right

place and more suitable items should be send to the customer. The operation should

focus on the service and price to compete with the others.

Name Sales,Myen Number of stores Sales per store,Myen

7eleven 3781000 16319 232

Lawson 1759000 11606 152

FamilyMart 1722000 10547 163

FamilyMart is the 3rd biggest convenience store in Japan and also has explored the oversea

market. The economy and community of Japan is very steady, so the expansion is becoming more

and more difficult. FamilyMart’s sales per store is lower than 7Eleven and according to their finance

report, their new opened store’s performance is not good though they has grown fast.

I suggest that the expansion should be considered carefully while the growth of new store

contribute lesser to the sales. The efficiency of sale has slowed down since 2011, so it is a time

for quiet analysis and reappraisal.

The product of FamilyMart is varies from food, non-food to service, the food sales is quite

important to revenue and its profit ratio is over 38% while the non-food and service’s profit ratio

just reach 10%. The food should be fresh both taste and the varieties, they should replace at least

20% food to make the food zone attractive to the consumer. The website should also support the

feedback of consumer depend on the gooods.

To improve their sales, the passenger flow and Per Customer Transaction should be better.

Though the profit ratio is low, but it is wise to offer much more convenience service like baby care

and shoe cleaning machine, because unlike the food or books, the service doesn’t cost a lot of

room and can be changed according to the customer, that will attract more customer to consume

there.

The E-commerce’s revenue grows 10% every year and will become more and more important

in the future. If the FamilyMart can offer the online service not only the e-ticket, more and more

consumer can book their food and daily goods by internet and take these products home after

work. It is also very important to cooperate with the local shops to enrich the item online.

Above all, these suggestions might be helpful to FamilyMart or the other convenience stores

in Japan:

(1)Evaluate the expansion of stores and optimize the distribution.

(2)Refresh the varieties of food depend on the feedback from consumer.

(3)Offer more convenience services, like clean shoe machine, cellphone charging.

(4)Expand online service including the online order and offline pick up.

(5)Cooperate with the local shops to enrich the items including food and other goods.