A 30-second introduction

Konbini: a small shop connected to a larger system

コンビニエンスストア

Japanese convenience stores sell food, drinks and everyday goods, often over long opening hours and alongside other services. Ordering, distribution, equipment and business arrangements make that small shop work.

Compact food shelves
Compact food shelves
Payment terminal and receipt
Payment terminal and receipt

01

The system behind the shelves

The system behind shelves

Point-of-sale information records sales; ordering determines replenishment. Shared distribution brings goods together for delivery, while temperature control addresses different product needs. The sales floor depends on manufacturing, warehouses and transport outside the shop.

A delivery truck with reusable crates. Illustration.
A delivery truck with reusable crates. Illustration.

Item management and delivery temperatures

Seven-Eleven describes item management as a cycle: examine sales and local conditions, predict demand, choose quantities and presentation, then check the result. In its December 2023 explanation, the company assigns rice balls and boxed meals to a 20°C delivery category, salads and milk to 5°C, and ice cream and frozen foods to −20°C. Products from different makers can share transport within a temperature category.

Developing the rice in an onigiri

Product development addresses what to sell and how to make it, before a branch places an order. In a Seven-Eleven interview, an onigiri developer describes working with ingredient suppliers and manufacturers. Rice quality varied with origin and harvest time, even within one variety. A project with Kyoto rice specialist Hachidaime Gihey examined selection, milling and handling, then introduced a rice blend into products in March 2023 after more than a year’s development.

02

Connections to other services

An ATM
An ATM
A multifunction copier
A multifunction copier
A delivery parcel
A delivery parcel

Bill collection, copying, ATMs and parcel services connect branches with other institutions. Availability depends on equipment, hours and service agreements.

03

Who operates the branch?

A franchisee operates a branch under an agreement with the chain. Seven-Eleven Japan describes its franchisees and headquarters as separate businesses, with headquarters providing support and franchisees managing stores and sales. A directly operated branch is run by the company itself.

Franchisee and headquarters
  1. Franchisee

    Runs the store and sales as a separate business.

  2. Headquarters

    Supports branding, products, information and distribution.

Based on Seven-Eleven’s explanation. Directly operated stores are run by the company itself.

04

How chains developed

Early local experiments

Before the major chains expanded, local retailers were already experimenting with pooled purchasing and wider ranges. Toyonaka City Library documents Mamy, opened in 1969 by local shopkeepers and affiliated with the My Shop purchasing cooperative. Whether to count it as a convenience store or a small supermarket remains disputed. Seicomart opened in Sapporo in 1971.

Chains, logistics and service expansion

Japanese convenience stores adapted an earlier American retail format during the early 1970s, developing local distribution, products and services. Chains followed different paths: FamilyMart opened its first store in Sayama in 1973 and its first franchise in Funabashi in 1978. Seven-Eleven Japan opened in Toyosu in 1974 and began twenty-four-hour operation at its Toramaru branch in Kōriyama in 1975. Its later milestones include shared distribution in 1976, POS in 1982, electricity-bill collection in 1987 and ATMs in 2001. Other chains introduced services on their own schedules.

05

A changing retail setting

Online ordering, delivery and adjustments to opening hours continue to alter operations. Staffing, food loss and franchise conditions also affect the individual shop. Seven-Eleven reported on 4 February 2020 that 129 stores had changed their contracted opening hours by 1 February, during its trials of overnight closures.

Check your understanding

Why is yesterday’s sales total not automatically tomorrow’s order?

The shop also considers local demand and conditions, makes a prediction, then checks the result after selling. Distribution fulfils the resulting order.

How does a franchise branch differ from a directly operated one?

A franchisee runs the branch as a separate business under an agreement with the chain. A directly operated store is run by the chain itself.

When did Seven-Eleven Japan open its first store?

It opened in Toyosu in 1974. Other Japanese convenience-store ventures had already begun.

How is developing an onigiri different from ordering it?

The development team works on ingredients and manufacturing with suppliers; the branch orders quantities of the resulting product for its next delivery.

Sources and images
  1. sej.co.jp: Reference on Konbini: a small shop connected to a larger system
  2. sej.co.jp: Reference on Konbini: a small shop connected to a larger system (2)
  3. faq.sej.co.jp: Reference on Konbini: a small shop connected to a larger system
  4. Image licence terms:CC BY-SA 3.0
  5. 戦後日本のイノベーション100選 コンビニエンスストア
  6. ファミリーマートのあゆみ|会社案内|ファミリーマート
  7. sej.co.jp: Reference on Konbini: a small shop connected to a larger system (3)
  8. セブン‐イレブン:OFC・単品管理の説明
  9. セブン‐イレブン:温度帯別共同配送、2023年12月8日更新
  10. 豊中市立図書館:日本初のコンビニは豊中にあった?!
  11. セコマグループのあゆみ
  12. sej.co.jp: Reference on Konbini: a small shop connected to a larger system (4)
  13. Convenience shop interior in Kyoto, Japanexperterna, 2014. CC BY-SA 3.0.