Business Lawson and KDDI join operations to challenge 7-Eleven

[thomas]

Mobile carrier KDDI Corp. will acquire a 50-per cent stake in Lawson Inc. for nearly 500 billion JPY (USD 3.37 billion) to help the nation's third-largest convenience store chain incorporate digital technologies and offer new services.

KDDI to jointly operate Lawson with Mitsubishi after tender offer | The Asahi Shimbun: Breaking News, Japan News and Analysis

Lawson convenience store chain is teaming up with the KDDI telecommunications group to enhance its online services and strengthen its physical stores. This strategic move aims to lay the groundwork for expanding overseas, focusing on challenging market leader Seven-Eleven Japan. Recently, KDDI announced its intention to acquire a 50% stake in Lawson through a tender offer. Currently, Lawson is partially owned by the trading house Mitsubishi Corp. By taking Lawson private, KDDI aims to leverage the synergies between the two companies. During a news conference, Lawson President Sadanobu Takemasu emphasized their shared future and the utilization of each company's strengths. Until now, Lawson's domestic and international supply chains for product procurement and development have been supported by its parent company, Mitsubishi. In the future, Lawson will collaborate with KDDI, harnessing the latest technology and combining customer data from both entities. This strategic alliance reflects the growing importance of digital transformation in the retail sector as companies seek to adapt to changing consumer behaviours and global markets. Lawson and KDDI aim to create a powerful platform for growth and innovation by joining forces.

Lawson reported average daily sales per store of 549,000 yen for the March-November period. Although this was up 28,000 yen on the year, it was far behind Seven-Eleven Japan's 698,000 yen and fell short of second-place FamilyMart's 553,000 yen. KDDI previously announced a capital and business alliance with Lawson in 2019, holding 2.1% of its shares. Their partnership until now has been limited to such measures as sharing the same reward points system, called Ponta. By fully joining the KDDI group, Lawson can use the group's 2,200 or so mobile phone stores in Japan to sell private-label Lawson products. Using Lawson stores to sell KDDI services in the insurance, finance and health fields is also under consideration. The Ponta customer database, totaling well over 100 million people, is a major asset. Both parties will analyze purchasing data and consumer preferences for the wide range of products sold at Lawson convenience stores and use the results in product development.

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Lawson, KDDI to fuse physical and digital to challenge 7-Eleven

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