In the convenience store industry, larger companies are expected to rapidly outdistance medium-sized and smaller ones and capture dominant market shares. Furthermore, as Japan’s aging population and declining birthrate lead to a smaller population and changing social structure, the main customer base of convenience stores is shifting from younger customers to middle-aged and elderly customers. This means that Circle K Sunkus will need to satisfy new types of customer needs going forward. Merchandise lineups and store formats as they stand now have limited growth potential. Circle K Sunkus, therefore, sees an urgent need to create new types of convenience stores in order to break free of a market logjam.
Circle K Sunkus plans to Rethink and Reform all aspects of its operations to position itself for the future, in recognition that the keystones to a franchise business are effective contracts, systems and education.
Increasing customer footfall is high on the agenda for Circle K Sunkus. To improve customer satisfaction, no effort will be spared creating product lineups and sales floors corresponding with customer needs. Circle K Sunkus will also aim to upgrade basic sales skills. To this end, efforts to educate franchisee staff will be stepped up to ensure their complete adherence to basic operating procedures, and to develop personnel in charge of placing orders. Head Office costs will be rigorously reduced and greater support will be extended to franchisees, with the aim of strengthening store operations and improving franchisee profits. The overarching aim is to increase earnings at both the Head Office and franchisees. To cope with an increase in franchisee contract expirations in the medium term, special incentives aimed at raising the ratio of contract renewals will be introduced.
Circle K Sunkus gives top priority to enhancing new store investment efficiency, with an emphasis on ROI as the performance indicator. Every effort will be made to research markets and key demographics before opening stores to improve new store daily sales. Concurrently, Circle K Sunkus will reduce store rents and construction costs. Together, these actions should elevate store earnings power and enable Circle K Sunkus to recover its investments.
Circle K Sunkus will further enhance and develop original products that raise its distinctiveness, while embracing the challenge of developing new products and sales methods that better cater to the location of each store and customer needs. Furthermore, Circle K Sunkus will further develop private label products that tap into the UNY Group’s collective product development and procurement capabilities. By offering a balanced product lineup featuring both high-quality, value-added products and affordably priced products, Circle K Sunkus will stay on top of increasing bipolarization of consumer needs. Circle K Sunkus will also develop and roll out new services as a means of attracting more customers to its stores. And Circle K Sunkus will explore new possibilities for services. This includes expanding content in its KARUWAZA STATION in-store multimedia terminals, and making inroads into the online shopping business linked to its in-house KARUWAZA CLUB.
In response to growing public interest in corporate social responsibility (CSR), Circle K Sunkus will establish a management framework grounded on compliance by refining its internal control system. The company will strive to incorporate a CSR perspective in business management, including various social contribution activities and initiatives that help address environmental issues.