C-stores sales dropped in Japan

Sales at convenience stores in July went down 0.6% year on year to ¥986 billion ($9 billion) on an all-store basis for the first time in six years, industry data showed.

The poor performance reflected slow demand for cold drinks, ice cream and other items for summertime due to the bad weather, according to the data from the Japan Franchise Association. Sales on a same-store basis also fell by 2.5% to ¥917 billion ($8,6 billion).

Overall number of shoppers at convenience stores in July fell 4.7% on a same-store basis, down for the fifth straight month, according to the association. On an all-store basis, the decreased was at 2.8%.

The declines followed strong sales in July last year, when the weather was fine. “Convenience store operators were unable to offset the slump at existing outlets with new store launches,” an association official said.

Seven-Eleven Japan Co. was among the main convenience stores chains to be affected, with its sales falling 1.2% on an all-store basis, down for the first time in nine years and four months. Shoppers at 7-Eleven also fell 5.6% on a same-store basis, larger drops than their rivals. For 7-Eleven, the down would apparently be also related to a series of security breach cases involving the 7-Eleven pay smartphone-app, industry sources claim. “The possibility cannot be ruled out that the 7pay scandal has caused consumers to shun Seven-Eleven Japan outlets,” an industry official said.