Convenience store operators Lawson and FamilyMart posted higher consolidated net profits for their first fiscal half ended in August, thanks to strong sales of private label products as consumers battled higher prices.
Lawson reported record sales and net profit for the first half as customer numbers and revenue per customer grew after the company strengthened its sales promotion and home delivery services.
Lawson’s operating revenue rose 4.9% from a year earlier to ¥572.1 billion, and net profit grew 8% to ¥34.9 billion.
FamilyMart’s net profit nearly doubled to ¥65.4 billion, although operating income fell 1.4% to ¥257.5 billion. The original clothing and food products sold well. In addition, the company made a special profit from the reorganization of its Chinese activities.
Seven & I Holdings’ 7-Eleven supermarket business was sluggish both in Japan and abroad in the six months ended in August.
“We have failed to meet customer expectations. Our ability to respond to change is decreasing,” said Ryuichi Isaka, CEO of Seven & I.
Seven & I’s net profit fell 34.9% to ¥52.2 billion.
On Thursday, the company announced plans to separate its supermarket and restaurant businesses early and focus on its convenience store business.
Seven & I is looking to boost its corporate value to counter a 7 trillion yen takeover proposal from Canadian supermarket operator Alimentation Couche-Tard.
