Japan's FamilyMart taps Panasonic technology to beat staff shortage

Lawson

02/04/2019 07:14

TOKYO, April 2 (Reuters) - Japanese convenience store chain
FamilyMart said on Tuesday it was partnering with Panasonic Corp
 6752.T  to incorporate a range of labour-saving technologies
into its 24-hour stores which have struggled with a shrinking
workforce. 
    Convenience stores in Japan are grappling with the tightest
labour market in more than 40 years. Amid complaints from
franchise owners, 24-hour industry leader 7-Eleven recently
agreed to test shorter hours at 10 of its 20,700 stores.
 urn:newsml:reuters.com:*:nL3N20O1IA
    "We are faced with a labour shortage, and the issue of
24-hour operations. There is no time to waste," FamilyMart
President Takashi Sawada told reporters at the opening of the
first store using Panasonic technology in Kanagawa, southwest of
Tokyo. 
    The convenience store arm of retail group FamilyMart UNY
Holdings  8028.T  said the changes will include advanced sensors
and artificial intelligence to help stores re-stock more
efficiently, as well as self check-out, digital displays and
price tags.
    The companies did not announce terms of the deal, saying the
scale of their partnership depended on whether the initial steps
prove successful.
    Rival Lawson Inc  2651.T  has also teamed up with Panasonic
for self check-out services but such features - now common in
other countries - have been slow to take off amid worries about
dissatisfying customers accustomed to high levels of service.   
    The ubiquitous stores began expanding in the 1970s as their
24-hour format proved a perfect match with the country's dense
population and long working hours. They have become an essential
part of modern Japan, offering everything from packaged "bento"
lunches to ATM services. 
    Analysts have said the market may be nearing saturation,
with the total number of stores reaching roughly 58,000 last
year, given the country's decreasing population. 

 (Reporting by Ritsuko Ando; Editing by Muralikumar
Anantharaman)
 ((Ritsuko.Ando@reuters.com; +81 3 6441 1743; Reuters Messaging:
ritsuko.ando.thomsonreuters.com@reuters.net))