Japan regulator tells convenience stores to stop forcing 24-hr rule on franchises (updated)

Lawson

02/09/2020 08:46

(Adds comment, background)
    TOKYO, Sept 2 (Reuters) - Japanese anti-monopoly regulators
on Wednesday told convenience store chains to stop forcing
franchises to stay open 24 hours a day, after complaints from
franchise owners struggling to find late-night staff and make a
profit during quiet business hours.
    "We indicated that it could be a problem under the
anti-monopoly laws. We requested immediate improvements and
asked that improvements be reported to us," the Fair Trade
Commission said in a report.
    The directive by the regulator, based on a survey of more
than 12,000 convenience stores and 8,423 franchise owners, was
aimed at Japan's eight major convenience store operators,
including Seven & i Holdings'  3382.T  7-Eleven chain and Lawson
Inc.  2651.T .
    The issue of convenience stores' hours became a hot topic
last year after franchise owners, struggling with the tightest
labour market in more than 40 years, launched a campaign to
change their contracts with the operators.
    Stories of owners forced to work amid massive snowstorms or
in the wake of a family death attracted national attention,
putting operators under pressure to loosen franchise contracts
and allow for shortened hours.
    Japanese convenience stores began expanding in the 1970s as
their 24-hour accessibility proved a perfect match with the
country’s dense population and late-night work culture.
    But many analysts say the industry now looks saturated, in
light of Japan's ageing population, slow economic growth and new
competitors such as Amazon Prime.

 (Reporting by Tim Kelly and Ritsuko Ando; Editing by Clarence
Fernandez & Shri Navaratnam)
 ((tim.kelly@thomsonreuters.com; +813-6441-1311;))