NEW DELHI: Modern convenience store outlets are gaining in popularity across Asia with 7-Eleven in the forefront of the process, a new report has said.
The study, Asian Convenience Store Market Outlook 2015 from research business RNCOS, estimated that total Asian retail sales would grow at a CAGR of around 12% during the period 2013-2015.
It noted that modern retail formats were becoming increasingly widespread as people's preferences changed with growing incomes and busy lives meant a desire for one-stop shopping was common.
In addition, franchising agreements and collaborations had accelerated the process of expanding the convenience store sector across the region. Businesses had also made significant investments to increase the range of products and services offered at stores in order to attract more customers and gain market share.
The report named 7-Eleven as a dominant player in the Asian convenience store industry, an assessment reinforced by several recent announcements by various franchisees.
Thus, in Indonesia, retail firm PT Modern International plans to open 100 more 7-Eleven outlets in Jakarta, where it is aiming for a 30% increase in revenues.
In China, 300 new stores are planned in Chongqing alone, where a joint venture between Mitsui & Co Ltd, Southern Hope Industrial and Seven-Eleven Investment Co Ltd, expects a growth in demand as the 30m-population city undergoes significant economic development.
And in the Philippines, another 200 store openings are planned for this year by Philippine Seven Corp (PSC). to bring the total to 1,000. Jose Pardo of PSC expected that number to rise substantially "when the sari-sari stores are closed".
Growth for 7-Eleven in the Japanese market is more dependent on customer focus. That has meant, noted Ryuichi Isaka, president and CEO, 7-Eleven Japan, taking on food preparation for time-poor households and offering bill payments and banking services in store.
Franchisees there have also adopted home delivery systems, a major growth area given Japan's ageing population.
Data sourced from RNCOS, Reuters, Malaya Business Insight, Inside Retail Asia, Retail Times; additional content by Warc staff