Convenience store giant Family Mart is to change over around 10% of its stores, some 500 branches, to am/pm.
Family Mart purchased am/pm in late 2009 and is hoping its tactic will turn around its subsidiary’s fortunes. Currently together they hold 8,700 stores throughout the country, taking the group close to the 9,600 branches of number two convenience store Lawson’s. Family Mart, however, announced at the time of the acquisition that they would keep am/pm wholly independent. The fact that they are willingly to switch some of their own stores to their smaller former rival indicates they are serious about building it up.
[Image courtesy of jpellgen on Flickr.]
It begs the question, how much does the consumer care about which specific convenience store they are shopping at? The number one factor in the appeal of the conbini is, well, the convenience — it is always nearby and there are a plethora of basic groceries. As long as it has all the right range of food, drink and essential household items, does the consumer care what is the name above the door?
The answer, it seems, is yes. Am/pm has failed to rise beyond number seven partly because it has not established a name for itself — there is little unique about it in terms of its branding or the products it offers. Family Mart, on the other hand, has MUJI products, its own products, and tie-ups with the T-Card. Lawson’s also has a distinct character through its Natural Lawson and Lawson 100 range of stores, plus a fondness for exciting collaborations and campaigns.
Given Lawson’s plan to start the PONTA point card this year as a direct challenge to the Family Mart-Tsutaya T-Card (which has 33 million members and 56 affiliates), could this decision by Family Mart fatally split their forces against their arch-rival — or will it shore up its smaller subsidiary into a more formidable, mid-level convenience store? The change-over between the Family Mart and am/pm branches will be happening through to February next year, and we will see over the months what the new name does to the sales at the stores.
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