Store Opening and Closure Risks from Market Saturation and Diminishing Expansion Opportunities
First written in FY2017. 13 of 18 entries say "Materialised", first in FY2018-Q3. Latest entry: FY2025.
Poplar moved to the "Worse" side of this theme in 2018, 1 year before the typical company in this theme (2019).
The whole theme swung hardest in 2018: 11 of 30 companies on the "Worse" side.
0 other companies' latest entry also says "Reframed".
- FY2025ReframedAnnual report
「Competition in the convenience store industry continues amid oversupply of stores, and in some regions the scope for new openings is shrinking. Our Group conducts sufficient market-area surveys and site analyses when developing stores, but if we are unable to open stores as planned, incur costs associated with unexpected closures, or if the formation of a dominant store network breaks down and disrupts the shipment or delivery of products in terms of volume or routes, our Group's operating results and financial position may deteriorate.」
The store opening and closure risk was organized as the “effectiveness of the store opening and closure policy,” with disruption to product shipments and deliveries due to the breakdown of the dominant store network added to the existing risks of failure to achieve planned openings and closure costs. - FY2024-Q3MitigatedAnnual report
「We opened 11 staffed stores and added 20 Smart Self stores, for a total of 31 openings. We also closed 19 stores, including unprofitable stores and stores withdrawn from operations during the COVID-19 pandemic. As a result, the number of stores at period-end was 274 (257 at the end of the same period of the previous year).」
Following the previous phase of store network contraction, 31 stores were opened and 19 were closed, resulting in a net increase, and the number of stores at the end of the period also exceeded that at the end of the same period of the previous year. Deterioration in store openings and closures continues to ease. - FY2024-Q2MitigatedAnnual report
「We opened 9 staffed stores and added 15 Smart Self stores, for a total of 24 openings. We also closed 13 stores, including unprofitable stores and stores withdrawn from operations during the COVID-19 pandemic. As a result, the number of stores at period-end was 273 (260 at the end of the same period of the previous year).」
Following a period of large-scale contraction of the store network, the number of stores at the end of the period continued to exceed that at the end of the same period of the previous year, with 24 openings and 13 closures, indicating that deterioration in store openings and closures is easing. - FY2024-Q1MitigatedAnnual report
「In response to growing momentum to attract convenience stores into facilities as economic activity normalized, we opened 7 stores inside facilities and added 10 Smart Self stores, for a total of 17 openings. We also closed 9 stores, including unprofitable stores and stores withdrawn from operations during the COVID-19 pandemic. As a result, the number of stores at period-end was 270 (253 at the end of the same period of the previous year).」
After a period of continued large-scale contraction of the store network, 17 stores were opened against a backdrop of growing demand to attract stores into facilities, while 9 stores were closed, resulting in 270 stores at period-end and a shift toward a net increase. - FY2022MaterialisedAnnual report
「Demand from facility operators remained strong for enhancing convenience even during the COVID-19 pandemic, so we opened 24 stores, mainly inside facilities. However, in addition to 68 stores converted to the Lawson-Poplar brand and 21 stores closed following our withdrawal from the Hokuriku and Chubu areas, we closed a total of 139 stores, including unprofitable company-operated stores. As a result, the number of stores at period-end was 253, down 115 stores from the end of the previous consolidated fiscal year.」
During the fiscal year, 24 stores were opened while 139 were closed, reducing the number of stores at the end of the period by 115 from the end of the previous fiscal year to 253. The store opening and closure risk materialized as a large-scale contraction of the store network. - FY2022-Q3MaterialisedAnnual report
「Demand from facility operators remained strong for enhancing convenience even during the COVID-19 pandemic, so we opened 19 stores, mainly inside facilities. However, in addition to 68 stores converted to the Lawson-Poplar brand and 21 stores closed following our withdrawal from the Hokuriku and Chubu areas, we closed a total of 137 stores, including unprofitable company-operated stores. As a result, the number of stores at the end of the quarter was 250 (447 at the end of the same quarter of the previous year).」
Brand conversions, regional withdrawals and the closure of unprofitable stores resulted in 137 actual closures, reducing the number of stores at the end of the period from 447 at the end of the same period of the previous year to 250. - FY2022-Q2MaterialisedAnnual report
「A total of 131 stores were closed, including 68 stores converted to the Lawson Poplar brand, 21 stores closed due to withdrawal from the Hokuriku and Chubu areas, and the closure of unprofitable company-operated stores. As a result, the number of stores at the end of the period was 248, compared with 460 at the end of the same period of the previous year.」
Brand conversions, regional withdrawals and the closure of unprofitable stores resulted in 131 actual closures, reducing the number of stores at the end of the period by 212 from the end of the same period of the previous year. - FY2022-Q1MaterialisedAnnual report
「A total of 122 stores were closed, including 68 stores converted to the Lawson Poplar brand, 21 stores closed due to withdrawal from the Hokuriku and Chubu areas, and the closure of unprofitable company-operated stores. As a result, the number of stores at the end of the period was 252, compared with 471 at the end of the same period of the previous year.」
Brand conversions, regional withdrawals and the closure of unprofitable stores resulted in 122 closures, reducing the number of stores at the end of the period from 471 at the end of the same period of the previous year to 252. - FY2021MaterialisedAnnual report
「13 stores were opened because more companies and organizations postponed or cancelled store openings during the COVID-19 pandemic, and because store openings were reviewed as part of business restructuring. In addition, 118 stores were closed sequentially from the third quarter onward in preparation for business reorganization from the following fiscal year onward. This included 36 stores that will reopen under the Lawson Poplar or Lawson brand. As a result, the number of stores at the end of the period was 368, a net decrease of 105 stores from the previous consolidated fiscal year.」
In connection with risks relating to the scope and plans for new store openings, large-scale store openings and closures actually occurred: 13 stores were opened, 118 were closed, and the number of stores at the end of the period was 368, a net decrease of 105 stores. - FY2021-Q3MaterialisedAnnual report
「Regarding store openings, although many companies and organisations postponed or cancelled openings amid the COVID-19 pandemic, we opened 12 new stores during the cumulative period. Regarding closures, we closed 38 stores, including unprofitable stores eliminated as part of business-structure reform. The period-end store count was 447, compared with 487 at the end of the same period of the previous year.」
While postponements and cancellations of new store openings continued, 38 stores, including unprofitable stores, were actually closed, reducing the number of stores at the end of the period from 487 at the end of the same period of the previous year to 447. - FY2021-Q2MaterialisedAnnual report
「At the same time, 20 stores, including 7 unplanned closures of unprofitable company-operated stores, were closed to minimize the adverse impact of the COVID-19 pandemic on profits, compared with a budget of 15 stores. As a result, the number of stores at the end of the period was 460, compared with 486 at the end of the same period of the previous year.」
To mitigate the impact of COVID-19, 20 stores, including 7 unplanned closures of unprofitable company-operated stores, were actually closed, reducing the number of stores at the end of the period by 26 from the end of the same period of the previous year. - FY2021-Q1MaterialisedAnnual report
「Regarding store openings and closures, we opened 4 stores, including the Poplar Mishima store on a remote island located 45 kilometres offshore from Hagi, Yamaguchi Prefecture. To minimise the impact of the spread of COVID-19 on operating profit, we closed 6 stores, including 3 unprofitable company-operated stores. The period-end store count was 471, compared with 478 at the end of the same quarter of the previous year.」
6 stores, including unprofitable company-operated stores, were actually closed to mitigate the impact of COVID-19, reducing the number of stores at the end of the period from 478 at the end of the same period of the previous year to 471. - FY2020MaterialisedAnnual report
「At the same time, 52 stores, including 19 unprofitable company-operated stores, were closed, resulting in 473 stores at the end of the period, a net decrease of 2 stores.」
In connection with store opening and closure risks, 52 stores, including 19 unprofitable company-operated stores, were actually closed, resulting in a net decrease of 2 stores at the end of the period. - FY2020-Q3MaterialisedAnnual report
「At the same time, we accelerated the closure of unprofitable stores and closed 33 stores, resulting in 487 stores at the end of the period, an increase of 11 stores from the end of the same period of the previous year.」
The accelerated closure of unprofitable stores actually took place, with 33 stores closed during the cumulative third quarter ended 31 December. - FY2019MaterialisedAnnual report
「As in the previous year, we continued to focus mainly on opening stores within facilities such as factories, office buildings, schools, and hospitals. During the fiscal year, we opened a total of 47 stores and closed 33, for a net increase of 14 stores. The number of stores at period-end was 475.」
In connection with store opening and closure risks, 33 stores were closed during the fiscal year, while 47 stores were opened, primarily within facilities. - FY2018MaterialisedAnnual report
「In the fourth quarter, sales fell short of expectations as customer numbers and sales declined due to bad weather and new store openings were delayed,」
Delays in new store openings actually occurred and were identified, together with declines in customer numbers and sales due to bad weather, as factors behind the full-year sales shortfall. - FY2018-Q3MaterialisedAnnual report
「As a result, sales at existing stores remained strong at around 100% year on year, but due to the impact of bad weather and delays in opening stores, chain sales were ¥39,067 million, down 12.1% year on year, and operating revenues were ¥21,931 million, down 15.3%.」
Delays in opening stores actually occurred and were identified as factors behind declines in chain sales and operating revenues. - FY2017First statedAnnual report
「Competition in the convenience store industry continues amid oversupply of stores, and in some regions the scope for new openings is shrinking. Our Group conducts sufficient market-area surveys and site analyses when developing stores, but if we are unable to open stores as planned or incur costs associated with unexpected closures, our Group's operating results and financial position may deteriorate.」
Against a backdrop of store oversupply and a shrinking scope for new openings by region, the Group conducts market-area surveys and site analyses, while identifying failure to achieve planned openings and costs from unexpected closures as risks.