Shortage of manpower: 16000 stores or 24-hour cancellation

category:Finance
 Shortage of manpower: 16000 stores or 24-hour cancellation


Reporter Liu Yujing

Editor u3099 Hui Fang

The labor shortage caused by Japans aging of young children has a great impact on the service industry and retail industry. Cancellation of 24-hour operation has become a scheme explored by many convenience store chains recently.

On November 14, the Japanese convenience store giant family announced that it would allow the family franchise stores in Japan to shorten their business hours and modify their contracts with the franchise stores from March next year. There are two business model options for the new contract: 11:00 to 7:00 a.m. on the next day of each week, or take a break at a certain time in the evening of each day. The specific plan has yet to be finalized.

In addition, the familys support to 24-hour stores will also be increased from 100000 yen per month to 120000 yen, and more than 10 billion yen will be invested in one year to support subordinate franchise stores. In the future, the 24-hour shop will be cancelled, and the support fund will also be issued according to the number of days.

This policy applies to all franchise stores of the whole family, that is to say, about 16000 families may shorten their business hours starting next year.

According to Asahi Shimbun, about 7000 stores in this summers questionnaire survey of franchise stores of the whole family expressed their intention to discuss shortening business hours. In June this year, the whole family tried to shorten the opening hours of 24 stores - the stores closed one day a week from 11 oclock at night to 7 oclock in the morning; in August, the whole family also said that it would implement the pilot strategy of late night rest in more than 600 stores in Japan from the middle of October.

We recently reported on the strategy of 7-ELEVEN store restructuring in Japan: sorting out, transferring and closing about 1000 7-Eleven convenience stores in Japan, reducing franchise rates of franchise stores, increasing store subsidies, and further piloting the non 24-hour business system.

The main reason for this is still Japans labor shortage. The 24-hour system of convenience stores in Japan has lasted for nearly 40 years. Since the 1970s, in order to attract consumers and expand on the largest scale, major retail enterprises have successively implemented the 24-hour business system. In addition, the convenience stores in Japan can also take on the life business of ATM withdrawal, handling the procedures of residence ticket and so on, which brings great convenience to the public.

But now, Japan has a serious aging problem of young children and a serious shortage of convenience store workers, which leads to high labor costs. Many stores are unable to bear high labor costs, especially in the night time when consumers are less and labor is more expensive. The popularity of smart phones, online services and ATMs has made some functions of convenience stores have other alternative ways. Shortening the business hours of franchise stores is an attempt of convenience store chains to further optimize costs and improve revenue and expenditure.

However, the cancellation of the 24-hour business system also brings a series of challenges for logistics transportation and store management.

Due to the large number of consumers in Japanese convenience stores during the day, store inventory, in store cleaning, commodity replenishment and other links often need to be carried out late at night. If the 24-hour business system is cancelled, the logistics supply chain system and store management strategy must be further adjusted. At present, the whole family and 7-Eleven are trying to find a store management mode suitable for non 24-hour business system through store pilot.

Source: interface news Author: Liu Yujing editor in charge: Wang Xiaowu Gu NF