The retail industry is entering into a period of major transformation. In addition to traditional entities such as department stores, supermarkets and convenience stores, new retail business forms are emerging, including mega shopping mall developments led by real estate companies and JR train terminals being turned into retail centers.

Given that Japan's domestic market will inevitably shrink as the population declines, retail businesses need to generate innovative ideas and services to survive the competition. They must strive to meet the diversifying needs of consumers — ranging from elderly couples to single-member households.

Forty years after the first full-scale convenience store chain was established in Japan, convenience stores are the most familiar retail outlet for many consumers and there are 50,000 nationwide. There is a view that the number of convenience stores has reached its limit given their ubiquitous presence in large cities. But operators of such chains remain aggressive in their expansion. Some of them are pushing tie-ups with companies from other sectors. FamilyMart, for example, is developing business ties with agricultural cooperatives, pharmacies, restaurant chains and karaoke bars in its attempt to open "conglo-retail" shops. Seven-Eleven Japan has allied with West Japan Railway Co., and hopes to place kiosks and convenience stores operating in railway stations in the Hokuriku, Kinki and Chugoku regions under its fold. Seven & i Holdings chairman Toshifumi Suzuki is confident that the number of convenience stores in Tokyo has not yet reached a saturation point. Seven & i Holdings plans to open more stores in rural parts of the country as well.