Monthly Operations Summary FY2013 (November 2013)

Business Report


Non-consolidated net sales of existing stores were 101.0% of the same period last year


Total sales at all stores in November 2013 amounted to 163,564 million yen, 102.1% of the same period last year. Consolidated net sales of existing stores were 100.4% of the same period last year. Average daily sales per store (all stores) amounted to 514 thousand yen. The average number of customers per store (existing stores) was 862, 99.3% of the same period last year. The average spending per customer (existing stores) was 567 yen, 101.1% of the same period last year.


In November, we are still seeing declining sales of cigarettes, however consolidated net sales of existing stores exceeded sales of the previous year. It was mainly led by strong sales of fast food category which includes “Ohgon-Chicken” (tender and juicy fried chicken with a golden, crispy crust) that was launched in the last week of October. In addition, gross profit margin of total sales of existing stores improved in line with our estimate, due to more emphasis on value-added products and implementation of SCM restructuring.


Existing store sales by merchandise category were as follows:


Sales of over-the-counter fast food category substantially exceeded the amount in the previous year. It was due to high sales of in-store prepared foods, freshly-brewed coffee, MACHI café with high gross profit margin of over 60%, Chinese steamed buns, Japanese Oden hot pot and the favorable sales of new menu “Ohgon-Chicken” launched in the previous month that continues constant growth in sales.


Sales of sandwiches and other chilled bakery items significantly exceeded the amount in the previous year, led by sales of wheat bran sandwich developed for health-conscious customers and the newly launched mixed fruit and cream sandwiches.


The delicatessen category significantly exceeded the previous year’s amount. In particular, prepared food categories recorded significant year-on-year growth led by expansion of the customer base led by strategy targeting female and senior customers.


Sales of desert category exceeded the previous year’s amount driven by "Extra thick pancakes (with whipped cream)” and others that have relatively higher unit price.


Sales of daily delivered foods, canned/bottled foods, and frozen meals exceeded the amount in the previous year.


Sales of cigarettes were slightly better than the year-on-year trend in the last month. This negatively impacted net sales of existing stores by around 1.5% points year on year.


As of November 30, 2013, the Lawson Group had 11,536 stores in Japan, including 107 NATURAL LAWSON stores and 1,212 LAWSON STORE100 stores.


Existing store sales of Ninety-nine Plus, Inc. amounted to 95.0% of the same period last year (number of customers: 95.0%; spending per customer: 100.1%). In October, Ninety-nine Plus, Inc. opened 3 stores and closed no store.


To expand the customer base, Lawson is promoting "Miffy campaign" from November 26, 2013 to March 3, 2014.


Lawson plans to announce its earnings results for the third quarter of fiscal year 2014 on Thursday, January 9, 2014. Summary of financial results and supplementary information will be posted on this website.