
7-Elevens Are Becoming Lifelines for Japan's Elderly - wallflower
http://www.citylab.com/navigator/2016/08/how-7-elevens-are-becoming-lifelines-for-japans-elderly/493772/
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hkmurakami
The headline should be reversed. It's Japan's Elderly who have become
7-Elevens' Lifeline.

Competition in the industry is fierce. Chains are consolidating. Family Mart
alone has bought AM/PM (2009), Cocostore (2015), and Circle-K (2016) over the
last few years. Margins are becoming thin as traditional high margin items
like the bento boxes and hot food items are under assault by Super market
chains that (1) have begun offering these same items at bargain prices and (2)
are staying open until later to cater to the long hours of corporate workers.

Convenience stores traditionally catered to the youth and "salary men", but
with shifting demographics and shifting consumption patters of these
traditional target segments, they have been eyeing the elderly as a "growth
segment" since at least 2009 when I lived there as a "salary man".

~~~
level3
Your comment seems to imply that 7-Eleven is in trouble, but it's still the
biggest of the convenience store chains, which is why the other chains are
consolidating. I don't know about their profits, but revenue is growing year
after year, and their number of stores is also increasing. If anything, it
would be the other chains who might need to rely on the elderly more.

[1]
[http://mainichi.jp/premier/business/articles/20150707/biz/00...](http://mainichi.jp/premier/business/articles/20150707/biz/00m/010/015000c)

[2]
[http://www.sej.co.jp/company/suii.html](http://www.sej.co.jp/company/suii.html)

~~~
hkmurakami
Astute observation -- I wasn't aware of their competitive advantage, though I
did understand them to be doing well (other than having the best jingle in
their commercials).

But there are two passages that stand out to me from the mainichi article

> ２位以下のコンビニチェーンの顧客がセブン−イレブンに流れていることがわかります。

>
> 今後、国内の個人消費支出の大きな伸びは期待できないでしょう。「このチェーン店の、この商品が好き！」と消費者から思われ、選ばれ続けることが、コンビニ各社が成長するために不可欠の条件となりそうです。

7-11 has done excellently against its competitors, stealing their customers
away. But the industry as a whole has matured and has become a zero sum game.
I would still contend that targeting the elderly as a growth segment that
traditionally has not frequented convenience stores is an industry-wide growth
bet that includes 7-11 as well.

~~~
level3
I don't doubt that targeting the elderly as a growth segment would be a good
idea for the entire industry. It's just that your original comment suggested
7-Eleven in particular was in danger, which didn't jive with my personal
experience, so I looked up the numbers.

~~~
hkmurakami
So much for sacrificing precision for sensationalism and a nice sounding
headline. ;)

Chalk that one up to amateur copywriting.

------
bane
For Americans who are confused about how 7-11 might be a nice place to go and
not just a place for soda, cigarettes and lottery tickets, in Japan 7-11
carries higher quality items than what you might find in the U.S. The same is
also true of Denny's (an increasingly seedy establishment in the U.S.), which
serves high quality seasonal dishes in Japan.

Here's an example: Breakfast
[https://www.youtube.com/watch?v=sGsrz4Rrxac](https://www.youtube.com/watch?v=sGsrz4Rrxac)

Dinner
[https://www.youtube.com/watch?v=jKG9Sue_Muk](https://www.youtube.com/watch?v=jKG9Sue_Muk)

Denny's
[https://www.youtube.com/watch?v=bKOAR5aiF90](https://www.youtube.com/watch?v=bKOAR5aiF90)

~~~
jrnichols
> an increasingly seedy establishment in the U.S.

This varies quite a bit depending on where you are. We seem to have three
different versions of Denny's here in the Dallas/Ft Worth area alone. One
style thet looks like a classic diner, another that's your typical old Denny's
architecture, and a few more that are brand new construction. I'm not sure if
they're just testing out a concept, but it's been interesting to see that
they're still branching out.

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jerryhuang100
The convenient stores in Taiwan are also super convenient by not only offering
free WiFi, ticket buying, or bill payying,, but also like a mini-Staples +
mini-Shoprite + mini-Starbucks where you could just print PDF or photos,
picking up your online orderings, buying groceries, and even artisan latte.
And their density in Taiwan is much higher than Starbucks you could find in
Manhattan.

~~~
lllllll
I was so happily surprised when I saw customers of Taipei's 7-11s picking up
their online orderings at 11pm(Or whatever our) at the shop. I always thought
such a thing should exist in Europe, where for some reason you are never home
when the delivery arrives.

~~~
Merem
Well, Germany has so-called "Paketshops". Unfortunately, apart from gas
stations and the like, those usually close at 18:00. Alternatively, there are
always neighbours who can take the packet for you.

~~~
jerryhuang100
i think i saw this in the tv series of homeland s05 ;)

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rmason
When I was growing up as a baby boomer 7-11 was one of the hangouts like the
malt shop was for kids of our parents generation.

But for the next generations it changed. Young people gathering was seen as a
problem to be corrected. Local 7-11's started playing classical music
specifically to get rid of kids loitering.

I never thought of it before but what they've done is make certain that the
baby boomers will be the last generation to support 7-11 and after that they
will all die out. Don't know if it's played out that way in Japan or not.

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manav
Even though it's now Japanese owned, I've found the density of 7-11 to be so
much higher in Taiwan and Thailand. Overall its a convenient place to go to
whose prices are relatively set, products are safe, and money service
legitimate. Given the franchise model you will find one on every block right
now.

As a traveller in Asia its actually really just been a "safe" ATM spot for me.

------
dghughes
This is similar to an article about McDonald's restaurants in the US becoming
de facto community centres.

Older people sitting there all day, free WiFi, clean washrooms, thousands of
restaurants.

~~~
JoeAltmaier
In the US Midwest its Caseys, a chain of folksy convenience stores. Every
small town has one or two (one at each end of town). A couple tables inside
allow for socializing. Every morning the old folks gather and talk over
coffee. They're completely familiar to the behind-the-counter workers; clearly
welcome to stay and drink coffee and chat. Reminds me of the old town diner or
truck stop of my youth.

~~~
peckrob
Waffle Houses are somewhat analogous in the US South. They're everywhere
(there are 4 within a 15 minute drive of my house), but many people have a
favorite one. We'll occasionally pop into one of the nearby ones after church
on Sunday. Usually the same regulars in there and the staff know them by name
and order. My daughter loves it because she loves watching them cook.

Fun fact, FEMA has a "Waffle House index" [0] to determine how damaging a
weather event such as a hurricane or tornado outbreak has been based on how
many Waffle Houses are still open and what they're serving.

[0]
[https://en.wikipedia.org/wiki/Waffle_House_Index](https://en.wikipedia.org/wiki/Waffle_House_Index)

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jimmywanger
Same thing in Thailand I'm given to understand. Much like Taiwan, you can do
ANYTHING there, including getting a dose of free AC.

~~~
jfoster
Yes. I currently live in a condo in Bangkok that has an always-open 7-11 in
the building. Some of the interesting offerings:

\- I can pay pretty much any bill over the counter. (electricity,
mobile/internet, ecommerce purchases from Lazada, flights booked with AirAsia,
etc)

\- There's a wide selection of packaged & refrigerated food that they can warm
up for you; microwave meals, various types of toasties, congee/noodles (these
are self serve, but they provide the hot water), etc.

\- They sell alcohol in the fridges alongside soft drinks. I know that's
normal in other parts of the world too, but coming from Australia, is
unimaginable there.

\- I think there is also a catalog of stuff I can order and pay for in store
and pick up later. Not 100% sure because I haven't tried that yet.

~~~
wingerlang
> but coming from Australia, is unimaginable there.

Kind of like drive-through alcohol shops in AU.

~~~
bewaretheirs
New Hampshire has the "state liquor store and safety rest stop":

[http://philip.greenspun.com/images/pcd2488/nh-state-
liquor-2...](http://philip.greenspun.com/images/pcd2488/nh-state-liquor-21-21)

(in an odd remnant of Prohibition, New Hampshire only allows wine and liquor
to be sold by government-run stores).

~~~
lakkal
Beer and wine are available in NH from supermarkets.

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danbolt
Having lived in an Urban Renaissance complex that hosted a convenience store
(not a 7-Eleven, but a local co-operative), I can certainly understand how
seniors would stay social there. You'd always run into neighbours while
grabbing groceries and end up chatting. The place worked as a good social hub.

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huskyr
When i was in Japan a year ago i especially liked the convenience stores for
their coffee. Family Mart in particular has excellent coffee that's really
cheap compared to other places.

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erikb
But aren't these stores also more expensive than super markets? Looks weird
after reading the article.

~~~
jfoster
In Thailand at least, the prices are generally the same as supermarkets. I'm
guessing it's the same in Japan.

In Australia there is definitely a massive gap between convenience store
pricing and supermarket pricing, though. Probably to the point of paying 2x or
3x on some items.

~~~
geomark
I noticed the same comparing Thai 7-Elevens to those in the US. Nearly the
same prices in Thai 7-Elevens and Thai supermarkets, whereas in the US there
was a significant price difference (from what I recall, it's been a while
since I've been back).

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kimshibal
7E Japan has better quality food compare to other countries. Food is fresh.

------
aaron695
Very William Gibson

