In the third quarter of fiscal 2017, Lawson, Inc. pursued business activities that gave concrete shape to our corporate philosophy; “Creating Happiness and Harmony in Our Communities”.

Fiscal 2017 marks the second year of our “1000-Day Action Plan” project, during which we intend to build on the solid foundations established in the previous year to further progress and accelerate transformation of our business model.

Over the nine months through November 2017, Lawson stimulated further growth in existing-store sales of 0.3% year on year. Despite the adverse impact of typhoon weather in October, the average purchase price per customer continued to rise on the back of more abundant ranges of daily delivered food and frozen foods items, and stronger product appeal in the rice products and dessert categories.

In terms of store numbers, the Lawson Group opened 832 stores and closed 250 stores in the nine months to November 2017, resulting in a net increase of 582 stores and a total number of 13,693 convenience stores in Japan at the end of November 2017.

On the profit front, consolidated operating profit declined by 5.9%, or 3.4 billion yen, year on year to 54.2 billion yen, and consolidated net profit declined 3.1%, or 1.0 billion yen, year on year to 32.7 billion yen after: costs increased related to the decision to extend greater support to franchisees by shouldering a portion of franchisee disposal losses and electricity charges; the subsidiary company conducting preparations for participating in the financial services reported a loss, and; new store costs, including brand conversions from other convenience-store chains, increased.

Key Actions Taken in the Third Quarter of Fiscal 2017

• ・We relaunched our original Onigiri-ya brand of rice balls in October, fully reviewing the manufacture and management of fundamental ingredients such as rice, nori seaweed and salt and improving filings. Sales of the new Onigiri-ya increased as a result.
• ・Regarding boxed-meals, we launched a new version of the highly popular The Real Hamburger Bento in November after reviewing ingredients and manufacturing processes. In December, we then launched The Real Deep Fried Chicken Bento, and plan to launch more intermittent new products in The Real Bento series going forward.
• ・In over-the-counter fast food, our new Hot Milk product made with 100% locally produced fresh milk proved extremely popular. We intend to exploit the procurement power of our parent company Mitsubishi Corporation to develop new products and expand existing items using superior ingredients.
• ・We refreshed four items in our bran* bread series including bread roll in November. Improving the mix of rice and wheat bran in the bread-making process resulted in a better aroma and texture, which proved extremely popular with health-conscious customers.
  
  *Bran: the hull of wheat and rice, is rich in fiber and nutrients such as iron, calcium, magnesium, zinc and copper. It is also known for its low carbohydrates.