News On Japan

How Seven-Eleven Became Part of Everyday Life in Japan

TOKYO - Seven & i Holdings announced on May 25th that former chairman and honorary adviser Toshifumi Suzuki, one of Japan's most influential retail executives credited with establishing convenience store culture and transforming Seven-Eleven into a vital part of the nation's daily infrastructure, died of heart failure on May 18th at the age of 93.

In tribute to Suzuki, TV Tokyo Biz has re-released a special feature originally broadcast on 'World Business Satellite' in November 2013.

The program revisits celebrations marking the 40th anniversary of Seven-Eleven Japan following the opening of its first store in 1974, while also examining the company's ambitious 'omnichannel' strategy aimed at integrating online and physical retail operations.

The report followed a project team led by Suzuki's second son, Yasuhiro Suzuki, who was then president of Seven Net Shopping, as they worked alongside IT companies to envision consumer behavior in 2020. In an exclusive interview with WBS, Suzuki predicted that global Seven-Eleven sales would reach 10 trillion yen by 2015.

The archive also offers a rare look back at Suzuki's management philosophy, which challenged conventional thinking that small stores could not compete with large retailers and emphasized adapting constantly to changes brought by the internet age.

"We've been talking about integrating the internet and physical stores for about 10 years already," Suzuki said in the interview. "Our strength at Seven & i Holdings is that we have both. If this succeeds, it could become a model for the world."

The feature begins with executives from manufacturers and logistics companies gathering to celebrate the 40th anniversary of Seven-Eleven Japan. About 1,500 business partners attended the ceremony.

Suzuki, who introduced the convenience store model to Japan, described the company's evolution as entering a "second stage" beyond the traditional Seven-Eleven business.

Seven-Eleven Japan was founded in 1973 after Suzuki and other executives traveled to the United States and signed a licensing agreement with Southland Corporation, the operator of Seven-Eleven in America. The chain was launched as a new business under Ito-Yokado.

The first store opened in Tokyo in 1974. At a time when late-night shopping was rare in Japan, operating from 7 a.m. to 11 p.m. captured consumers' attention and helped establish the convenience store culture.

Business leaders attending the anniversary event reflected on how convenience stores transformed the retail industry and forced manufacturers to evolve through constant product development and competition for shelf space.

As Seven & i expanded, Suzuki turned his focus toward adapting to the internet era through the company's omnichannel strategy.

Rather than relying solely on online shopping, Suzuki envisioned a system linking physical stores, online retail, and social media into a unified shopping experience.

The company aimed to grow internet-related sales to 1 trillion yen within several years through the initiative.

To achieve this, Seven & i established a dedicated strategy team that included around 30 employees from IT firms such as NTT Data and Google working alongside company staff.

Meetings focused on imagining future consumers in 2020, including shoppers using smartphones to check inventory, purchase products online, and pick them up at nearby Seven-Eleven stores.

One scenario envisioned customers browsing products at Seibu department stores on smartphones before arranging payment and pickup at local convenience stores later the same day.

Seven & i planned to invest 100 billion yen over several years to build the necessary systems.

Executives also explored ideas blending entertainment and commerce, including proposals allowing viewers to purchase clothing worn by television drama characters through Seven & i's platforms.

Company officials said discussions with outside IT specialists were necessary because traditional retailers alone could not fully anticipate the rapid transformation of society through technology.

At the time of the interview, Suzuki was 80 years old and acknowledged that while he personally only used smartphones in a limited way, he had been among the earliest executives to push the idea of integrating digital and physical retail.

Suzuki said many employees at physical stores initially resisted the internet strategy because they feared online shopping would threaten their businesses.

However, attitudes changed after observing developments in the United States, where executives realized Seven-Eleven's nationwide network of approximately 16,000 stores represented a major advantage.

"What makes us unique is that we have both physical stores and internet operations," Suzuki said. "If it succeeds, it can become a global model."

Suzuki frequently highlighted Seven-Eleven's massive store network as one of the company's greatest strengths. He believed convenience stores would evolve beyond places to buy products and become pickup hubs supporting online commerce.

Despite concerns that Japan's convenience store market had become saturated, Seven & i maintained aggressive expansion plans. The company intended to open a record 1,600 new stores the following fiscal year.

Suzuki rejected arguments that the market had already reached its limit.

"When people said the limit was 30,000 or 40,000 stores, now there are already 50,000," Suzuki said. "The more locations you have, the easier it becomes for customers to use omnichannel services."

Rival chains were also developing new strategies. Lawson partnered with Yahoo on online delivery services, while FamilyMart worked with Japan Airlines on customer loyalty programs using airline mileage points.

Asked who he considered his competitors, Suzuki dismissed the idea of focusing on rivals.

"I don't think that way," he said. "I don't think about who the competitors are."

Previously: Toshifumi Suzuki, Father of Japan's Convenience Stores, Dies at 93

Source: テレ東BIZ

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