Mdn:
Major Japanese convenience store operators are having a tough time in China, with surging land prices thwarting their aggressive expansion plans for the burgeoning market ahead of the 2008 Beijing Olympic Games and the 2010 World Exposition in Shanghai.
FamilyMart Co. had 101 outlets in Shanghai as of the end of February this year, failing to achieve its target of 125 outlets.
The company sharply cut its store target for the end of February 2007 to 121 from the initially planned 300.
Lawson Inc., which has nearly 300 stores in Shanghai, aimed for a net increase of 100 outlets in 2005, but managed to secure a net increase of just 73 stores in the year.
In 2006, the company expects to add only around 30 stores.
Seven-Eleven Japan plans to increase its number of Chinese stores to 350 by the start of the Beijing Olympic Games, up sharply from 33 stores as of the end of February this year.
To achieve the goal, the company aims to accelerate its store openings by franchising local store operators.
The Japanese convenience store chains’ struggle in China partly reflects greater difficulty in opening outlets in favorable locations as competition for land intensifies with local businesses.
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