Convenience store chains Lawson and FamilyMart enjoyed net profit increases in the March-November 2024 period, while Seven & I Holdings, the operator of the industry leader Seven-Eleven Japan, suffered a sharp deterioration in its bottom line, according to their latest earnings reports.
Lawson logged a record third-quarter net profit of ¥52.4 billion, up 14.4% from a year earlier, thanks to robust sales of "Karaage-kun" fried chicken and other products under its own brand. A sales campaign with telecommunications carrier KDDI, which holds a 50% stake in Lawson, also contributed to the profit growth.
FamilyMart's operating revenue inched down as the number of directly operated stores dropped. But its net profit went up 62.4% to ¥80 billion because of special profit from a realignment of Chinese operations.
In a stark contrast, Seven & I saw group net profit tumble 65.1% to ¥63.6 billion, due to its slumping U.S. business and failure to promptly meet demand from increasing budget-minded convenience store customers.
"We were slow in responding to changing consumer behavior," said Yoshimichi Maruyama, Seven & I managing executive officer.
But he also noted that the firm's domestic performance is recovering thanks to an expansion of low-priced items.
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