Closing time? Japan’s convenience stores pressed to end 24-7 model amid severe labour shortages

The stores are an essential part of modern Japanese life, but the tightest labour market in more than 40 years is hurting franchise owners

Many say they work long hours themselves just to keep stores open 24 hours – a requirement in most franchise contracts

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Most Japanese convenience stores are operated by either 7-Eleven, FamilyMart or Lawson. Photo: Bloomberg

Published: 5:01pm, 21 Mar 2019Updated: 11:28pm, 21 Mar 2019

Japan’s 24-hour convenience stores are struggling to stay open around the clock as an industry that has continually expanded now finds itself at the sharp end of a labour shortage.

Franchise owners, some of whom were forced to work amid massive snowstorms or in the wake of a family death, have launched a campaign to persuade industry leader 7-Eleven to allow stores to close earlier.

Convenience store face numerous challenges, including new competitors such as Amazon Prime. Photo: AP

Although the debate has focused on their plight, it has also raised doubts over the future of a US$100 billion industry that is faced with an ageing population, slow economic growth and new competitors such as Amazon Prime.

“The question is, how much demand is there for 24-hour service in an age when online shopping is expanding?” said Takayuki Kurabayashi, a Nomura Research Institute partner who specialises in consulting for the retail industry.

Japanese convenience stores began expanding in the 1970s as their 24-hour accessibility proved a perfect match for the country’s dense population and late-night work culture.