Japan’s convenience stores are experimenting with labour-saving technology. Will consumers buy in?
Takanori Sakai works the graveyard shift four nights a week at the FamilyMart he owns in Himeji, a city in central Japan. He hasn’t hired someone for the slot, he says, because he can’t afford the higher pay employees demand these days. With competitors just down the street, Sakai is wary of raising prices to cover higher wages. “More and more stores can’t secure a profit,” he says.
Convenience stores are ubiquitous in Japan, numbering 55,310 as of January, according to the Japan Franchise Association. In total, they account for almost 17 percent of retail food and beverage sales. Holding the line on prices is increasingly difficult for franchisees and owners such as Sakai. The national unemployment rate has dipped to a 25-year low of 2.4 percent; to staff their stores in this tight labour market, franchisees in Tokyo, Osaka, and other cities have resorted to hiring foreigners, housewives, and the elderly—three categories of workers that many Japanese employers ignore. Meanwhile, minimum wages in the prefectures, which serve as something of a benchmark for retailers, rose by about 11 percent on average between 2013 and 2017.
This story is from the 1 April, 2018 edition of Bloomberg Businessweek Middle East.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the 1 April, 2018 edition of Bloomberg Businessweek Middle East.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Golfing With The Enemy
Did Donald Trump's executives violate the Cuban embargo?
Super-Rich Syrians Wait for War's End
Actor, author, playwright. Gill Pringle tries her hand at unravelling the mystery behind this enigmatic multi-hyphenate
Pam Codispoti
The mastermind behind the industry-shaping Chase Sapphire Reserve Card sets her sights on banking
This Time It's The Economy
President Rouhani’s budget sets offprotests from people angry about unemployment and inflation
Saudi Prince Counts On Support Of Citizens
State-worker salary increases appeal to the people, but policy may throw the budget off track
Stalin's Legacy Is Choking The Ukrainian Economy
The government has resisted pressure to lift a ban on land sales, despite pressure from the IMF and investors
Catastrophe Bonds Survive A Stormy Year
The turbulence of 2017 couldn’t destroy a market for betting against disasters
Riding The West Bank's Credit Boom
Increased consumer lending is creating a bubble in the West Bank
You'd Be Crazy To Buy Pizza With Bitcoin
Speculative fervour makes the cryptocurrency clumsy for commerce
What If The President Loses His Party?
Trump has to figure out a way to work with Republicans in Congress, or the global economy may be at stake