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Total sales increased 3.5% year on year to 108,954 million. Excluding sales of Highway Card toll cards, existing store sales increased 1.7% (the impact of these cards was 1.3%). Average daily sales per store were 477,000, while the average number of customers per store per day was 792, unchanged from a year earlier. Average amount spent per customer was 608, an increase of 1.7% year on year.
In the first 9 months of the current fiscal year, Lawson opened 449 stores and closed 344 stores (168 were relocated). As a result, Lawson had a total of 7,730 stores as of November 30, 2003, a net increase of 109 stores from the start of the fiscal year. Lawson is on track to open more than the 600 stores planned for this fiscal year because of its success in signing contracts for quality store locations. To raise the overall quality of the chain, Lawson plans to close more stores as it opens new ones in these better locations. Lawson's target for a 200 net increase in the number of stores remains unchanged.
Existing store sales have remained strong since the start of the third quarter, and the number of customers is also recovering.
Although November was wetter than last year, sales of ice creams and drinks increased due to higher temperatures throughout the country compared to the same month in the previous year. Chilled coffee sold in plastic packaging, in particular, sold strongly, due in part to a string of new product launches.
In rice dishes, November marked the first anniversary of the launch of the Onigiriya rice ball brand. A massive promotional campaign accompanying the roll out of this brand helped to boost overall sales of rice balls, although a year on, sales have inevitably fallen back slightly. Looking ahead, Lawson plans to release new products that it hopes will reinvigorate the hand-rolled rice ball lineup and increase year-on-year sales.
As has been reported in the newspapers, the price of rice, particularly of well-known brands, has risen in Japan due to the effect of the cool summer on the rice harvest. Nevertheless, Lawson is determined to strengthen its brands and increase sales of rice dishes by continuing to offer safe, healthy and tasty products that customers can trust, and that also adhere to the company's high quality standards. In principle, Lawson does not plan to pass the additional cost of rice on in the form of higher sales prices, a policy that will result in lower margins on these products. The price of rice is a risk factor that is inherent in Lawson's business.
Last month, Lawson reported that its Salad series was relaunched on October 28. This month Lawson can report that sales of this revamped line are robust and will be reinforced with the progressive release of new products that pay the same attention to the quality of the vegetables used.
Bakery items sold well, thanks in part to the release of Mori no Ki no Ko Curry Bread, which was developed with the renowned curry restaurant Bistro Kirakutei. Priced at 150, this is the second recent product developed in a tie-up with a partner. The Totte Oki Sengen series of Lawson original breads, also underpinned the strong sales.
Desserts, a category that Lawson is strengthening in the same manner as it is delicatessen and bakery items, sold well, paced by Lawson's original Fureshante series of chilled desserts and Sweet-sweet, a Lawson-only product developed with Glico Dairy Products Co., Ltd. However, yoghurts saw an inevitable slip in sales following runaway demand in the previous year.
Lawson sold approximately 120,000 bottles of Beaujolais Nouveau French wine following its release on November 20. These strong sales-four times more than in the previous year-were partly the result of stores taking advance orders.
Consolidated |
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MAR | APR | MAY | JUN | JUL | AUG | SEP | OCT | NOV | DEC | JAN | FEB | TOTAL | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Opening | 22 | 41 | 34 | 52 | 88 | 84 | 27 | 50 | 51 | 45 | 42 | 89 | 625 | |
Closure | 17 | 39 | 9 | 14 | 16 | 18 | 23 | 17 | 23 | 16 | 5 | 27 | 224 | |
Re-location | 9 | 23 | 19 | 25 | 22 | 24 | 15 | 18 | 13 | 13 | 12 | 12 | 205 | |
Subtotal | 26 | 62 | 28 | 39 | 38 | 42 | 38 | 35 | 36 | 29 | 17 | 39 | 429 | |
Total | 7,621 | 7,600 | 7,606 | 7,619 | 7,669 | 7,711 | 7,700 | 7,715 | 7,730 | 7,746 | 7,771 | 7,821 | 7,821 | |
Net Increase | -4 | -21 | 6 | 13 | 50 | 42 | -11 | 15 | 15 | 16 | 25 | 50 | 196 |
MAR | APR | MAY | JUN | JUL | AUG | SEP | OCT | NOV | DEC | JAN | FEB | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total Sales (¥millions) |
110,970 | 106,538 | 109,915 | 110,078 | 116,409 | 121,103 | 111,288 | 112,467 | 108,954 | 116,517 | 105,774 | 101,746 | |
All Stores yoy | 98.8% | 98.2% | 98.0% | 100.1% | 96.0% | 98.9% | 101.7% | 101.5% | 103.5% | 100.5% | 101.3% | 101.5% | |
Existing Store yoy | 99.0% | 99.0% | 98.1% | 99.4% | 95.1% | 97.8% | 100.4% | 99.9% | 101.7% | 98.7% | 99.4% | 99.6% | |
Ave.Daily Sales per store (¥thousands) |
476 | 473 | 471 | 488 | 497 | 514 | 488 | 476 | 477 | 491 | 445 | 457 | |
Number of Customers | (Number) | 771 | 789 | 801 | 813 | 827 | 850 | 836 | 814 | 792 | 773 | 727 | 755 |
comparison w/ previous yr |
98.2% | 98.8% | 99.7% | 97.8% | 94.4% | 97.7% | 100.8% | 99.7% | 100.0% | 100.0% | 100.0% | 98.8% | |
Spending per Customer | (¥) | 620 | 605 | 593 | 605 | 605 | 611 | 589 | 591 | 608 | 640 | 620 | 637 |
comparison w/ previous yr |
100.8% | 100.2% | 98.4% | 101.6% | 100.7% | 100.1% | 99.6% | 100.2% | 101.7% | 98.7% | 99.4% | 100.8% |
MAR | APR | MAY | JUN | JUL | AUG | SEP | OCT | NOV | DEC | JAN | FEB | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
Hokkaido | 474 | 473 | 470 | 467 | 471 | 475 | 476 | 477 | 479 | 482 | 483 | 485 |
Tohoku | 642 | 637 | 636 | 639 | 644 | 646 | 646 | 647 | 645 | 644 | 644 | 646 |
Kanto | 1,923 | 1,928 | 1,933 | 1,943 | 1,958 | 1,980 | 1,984 | 1,991 | 1,999 | 2,010 | 2,013 | 2,028 |
Koshinetsu | 315 | 312 | 311 | 311 | 312 | 312 | 310 | 310 | 308 | 308 | 308 | 311 |
Hokuriku | 223 | 220 | 220 | 221 | 222 | 224 | 223 | 222 | 223 | 223 | 223 | 224 |
Tokai | 625 | 622 | 624 | 627 | 632 | 629 | 625 | 626 | 630 | 631 | 639 | 644 |
Kinki | 1,735 | 1,722 | 1,726 | 1,723 | 1,735 | 1,740 | 1,734 | 1,739 | 1,740 | 1,743 | 1,751 | 1,756 |
Chugoku | 447 | 444 | 445 | 446 | 448 | 450 | 449 | 449 | 447 | 446 | 447 | 449 |
Shikoku | 366 | 369 | 368 | 366 | 368 | 371 | 370 | 369 | 371 | 370 | 371 | 378 |
Kyushu | 871 | 873 | 873 | 876 | 879 | 884 | 883 | 885 | 888 | 889 | 892 | 900 |
Total | 7,621 | 7,600 | 7,606 | 7,619 | 7,669 | 7,711 | 7,700 | 7,715 | 7,730 | 7,746 | 7,771 | 7,821 |
Shanghai | 103 | 106 | 109 | 116 | 120 | 126 | 129 | 134 | 144 | 146 | 148 | 153 |
* Note) excluding highway card