Monthly Operations Summary FY2013 (January 2014)

Business Report

Non-consolidated net sales of existing stores were 99.6% of the same period last year.

Total sales at all stores in January 2014 amounted to　160,383 million yen, 99.9% of the same period last year. Consolidated net sales of existing stores were 99.2% of the same period last year. Average daily sales per store (all stores) amounted to 494 thousand yen. The average number of customers per store (existing stores) was 779, 100.1% of the same period last year. The average spending per customer (existing stores) was 593 yen, 99.1% of the same period last year.

As for the month of January, the growth rate of existing store sales (non-consolidated) has dropped by 0.4%. This was mainly due to the continued decline in the sales of cigarettes and the negative repercussions from extremely favorable ticket sales in the same month last year. The sales of existing stores (non-consolidated) excluding the impact of cigarette and ticket sales exceeded the amount in the previous year. In addition, gross profit margin of total sales of existing stores has improved in line with our estimate, due to more emphasis on value-added products and the expansion of the over-the-counter fast food with high gross profit margin.

Existing store sales by merchandise category were as follows:

Sales of over-the-counter fast food category substantially exceeded the amount in the previous year. This was due to high sales of in-store prepared foods, authentic freshly-brewed coffee, MACHI café and Chinese steamed buns.

Sales of sandwiches and other chilled bakery items significantly exceeded the amount in the previous year, led by sales of wheat bran sandwich series developed for health-conscious customers such as the newly launched “Branburger,”-a cheeseburger made with wheat bran bread.

The delicatessen category significantly exceeded the previous year’s amount. In particular, prepared food categories recorded significant year-on-year growth led by expansion of the customer base.

Sales of daily delivered foods, canned/bottled foods, and frozen meals exceeded the amount in the previous year, driven by sales strategy targeting female and senior customers.

High quality ice cream “UCHI café KiSS” led the growth in sales of the ice cream category.

Sales of cigarettes were still weak and it negatively impacted net sales of existing stores by around 1.5% points year on year.

The ticket sales were considerably below the amount of the same month in the previous year. It was due to the repercussions from the favorable ticket sales in the same month of the previous year, when we had significant amount of ticket sales due to several large-scale entertainment events.

As of January 31, 2014, the Lawson Group had 11,609 stores in Japan, including 106 NATURAL LAWSON stores and 1,213 LAWSON STORE100 stores.

Existing store sales of Ninety-nine Plus, Inc. amounted to 95.9% of the same period last year (number of customers: 96.5%; spending per customer: 99.4%). In January, Ninety-nine Plus, Inc. opened 1 store and closed 2 stores.

To expand the customer base, Lawson has promoted "Miffy campaign" since November 26, 2013 till February 24, 2014.

Monthly Data

PDF download

Consolidated

Number of Stores

	SEP	OCT	NOV	DEC	JAN	FEB	TOTAL
Opening	99	74	66	85	42	61
65	86	51	63	72	105
Closure	28	32	27	37	17	64
21	34	28	37	39	29
Net Increase	71	42	39	48	25	-3
44	52	23	26	33	76
Total Number of Stores in Japan	11455	11497	11536	11584	11609	11606
11174	11226	11249	11275	11308	11384
NATURAL LAWSON	108	107	107	106	106	105
110	110	108	110	109	109
LAWSON STORE100	1208	1209	1212	1,214	1213	1202
1217	1210	1211	1204	1204	1205
Total Number of Stores Abroad	463	477	482	492	488	482
454	457	461	462	466	458

Sales

		SEP	OCT	NOV	DEC	JAN	FEB
All Stores (YOY)		100.3%	100.3%	102.1%	101.6%	99.9%	102.0%
Existing Stores (YOY)		97.9%	98.6%	100.4%	100.2%	99.2%	101.2%
Ave.Daily Sales per Store (¥thousands)		524	526	514	533	494	510
Number of Customers	(Number)	887	878	862	834	779	800
Number of Customers	comparison w/ previous year	96.8%	97.0%	99.3%	99.5%	100.1%	98.5%
Spending per Customer	(¥)	566	570	567	602	593	598
Spending per Customer	comparison w/ previous year	101.2%	101.6%	101.1%	100.7%	99.1%	102.7%

Non-consolidated