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Seven-Eleven Japan is moving forward with a plan to rapidly expand stores offering freshly baked bread. The goal is to open approximately 3000 stores, five times the current number, by February 2025. This initiative aims to attract a younger customer base and increase store sales.

By offering a variety of products including baked goods and bread, the aim is to boost sales at existing stores. Seven-Eleven plans to invest approximately 50 billion yen in this expansion plan, with the headquarters covering the installation costs of specialized equipment. The target is to increase store sales by more than 1%.

Additionally, with the success of experiments conducted about two years ago where bread was sold near the checkout counter, understanding the impulse buying needs, the decision was made to increase the number of stores implementing this strategy.

Stores equipped with machines to bake bread will receive deliveries of frozen products from headquarters. These products will be baked in-store for 1 to 2 minutes before being displayed using dedicated equipment. When orders are placed by customers, employees will heat them for several seconds before serving.

In addition to this initiative, efforts will be made to expand frozen food options and introduce smoothies, contributing to increased sales at existing stores. Similarly, Lawson has begun implementing new product strategies such as selling shaved ice, intensifying competition across the entire retail industry.

The provision of such new products and services tailored to consumer needs will be a crucial competitive factor going forward. There remains the possibility of selling products not previously handled, and the competition to develop hit products is expected to continue. This poses a new threat not only to supermarkets but also to the entire retail industry.

Source:Nikkei MJ May 18th, 2024