7-11 launches super-fast delivery service, Japan's convenience store battles Amazon

Yesterday, Tokyo's Nikkei reported that Seven & i Holdings, Japan's largest convenience store (7-11) operator, plans to launch an ultra-fast delivery service within five years to intensify competition with e-commerce giants such as Amazon.

Seven & i Holdings said it hopes to deliver food and dairy products to consumers' homes from its 20,000 7-11 convenience stores within 30 minutes, providing Japanese consumers with better consumer services and a more convenient consumer experience.

The main purpose of launching this plan is to seize the consumer market. According to a survey by Nikkei News, sales of Japan's convenience store industry fell by 6.1% in 2020, about 11.8 trillion yen, which was the first decline since 1981.

At the same time, Japan's e-commerce continues to develop, with the sales market growing by 22% to 12.2 trillion yen. Much of the rapid growth of e-commerce in Japan is due to the impact of the COVID-19 pandemic, which has led to the rise of home consumption. In 2020, e-commerce sales exceeded those of traditional chain convenience stores for the first time.

According to a report provided by Seven & i Holdings, the implementation of the ultra-fast delivery service plan will help promote delivery growth. The company currently provides delivery services at about 550 stores in Tokyo, Hokkaido and Hiroshima prefectures, and is expected to cover about 20,000 convenience stores across Japan by 2026.

Seven & i Holdings said consumers can order goods through the website or application. The online convenience store will offer about 3,000 kinds of food and daily necessities. The minimum delivery price is 1,000 yen per delivery, the delivery fee is 330 yen, and the door-to-door delivery service will last until 11 pm. At the same time, Seven & i Holdings pointed out that the delivery radius of each store is about 500 meters, but it may be expanded according to demand.

Meanwhile, Seven & i Holdings has currently established partnerships with 10 logistics companies and has decided to outsource delivery services to professional teams. It said that the quality of such services and the availability of delivery personnel are the top priorities emphasized by the company.

With the rise of home consumption, online shopping has gradually become the main way of consumption. While e-commerce platforms continue to develop, some traditional enterprises are also constantly reforming. At present, some convenience stores are gradually launching the "online consumption, door-to-door delivery" service mode. I believe that in the future, online retailers will also occupy a certain market share.

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7-11