The Lawson Group Sweeping Transformation Executive Committee entered its fourth year of operation in FY2023. The Committee was launched to realize our Challenge 2025 medium-term vision and mark our 50th anniversary in 2025.
Now that the COVID-19 virus has been downgraded to a Category 5 infectious disease under the Infectious Diseases Act and we move further into the post-COVID era, Lawson has expended considerable effort in the first quarter of FY2023, or the three months from March through May 2023, expanding the area company system across the country in order to realize the strategic concept for “community-based × individual customer and individual store-focused operations.” That has meant transferring more authority and discretionary power from the head office to frontline operations and pursuing various measures to help build a strong system and facilitate the dedicated pursuit of customer value creation at frontline sites that are much closer to our customers.

In the Domestic Convenience Store Business, each area company has promoted efforts to strengthen store displays, with particular attention paid to the range of products on offer and the volume of inventory, based on the strategy pursued by the Lawson Group Sweeping Transformation Executive Committee to renovate stores and expand the range of frozen foods and other daily products. We increased the number of stores offering MUJI products (something that we started in earnest in FY2022) to 11,371 stores* and increased the number of stores offering food delivery services to 3,676 stores.* We also implemented various measures as part of our HAPPY LAWSON PROJECT, which was first launched in FY2022, to encourage customers to enjoy shopping at stores that have been newly transformed by store renovations and new and extended product ranges.

As a result of the above initiatives, existing-store sales in Japan rose 6.2% year on year in the first quarter of FY2023.

With regard to our Seijo Ishii Business, existing store sales declined year on year in the first quarter. However, sales at stores located in offices recovered from the sluggish performance they suffered during the COVID-19 pandemic. On the product front, sales of Seijo Ishii’s own deli items, which are prepared in-house in the Central Kitchen, proved strong.

In our Entertainment-related Business, ticket handling volumes increased year on year in the first quarter thanks to the continued enthusiastic holding of more concerts and other events than in the previous year.

As for our Financial Services Business, we have been working to expand new services that use the Lawson Bank ATM network and ATM infrastructure, and to expand the number of collaborating operators and financial institutions.

Regarding our Overseas Business, people flows have gradually recovered in China, starting with the cities where the spread of COVID-19 infections peaked between the end of 2022 and early January 2023. The number of stores that have had to temporarily suspend operations or operate shorter opening hours have also decreased and daily sales per store are back on a recovery track.

Going forward, Lawson, will continue to promote measures for each project recommended by the Lawson Group Sweeping Transformation Executive Committee as part of our aim to earn the loyal support of all our customers and follow through on our three promises: Superior Taste, Human Kindness, and Environmental “Machi” Friendliness. Furthermore, the whole Group remains committed to solving medium- to long-term social issues to help generate sustainable growth, secure new earnings opportunities, and enhancing job satisfaction, and will continue to strive to achieve the Lawson’ Group’s ultimate aim of turning our stores into “new hubs of refreshment in every community” as we approach our 50th anniversary in 2025.

We ask all our shareholders and investors for their understanding and support of our management strategy for the business.

* Number of stores at the end of May 2023.