ND1014116

Title: Lawson Plans China Growth

Description: The Japanese convenience store operator is looking outside its home country for expansion opportunities.

Page Content:

TOKYO ? Japanese convenience store chain Lawson Inc. will open more than 10,000 stores in China within a decade, the Wall Street Journal reports. Currently, Lawson has about 300 stores in China.

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The plans come as the population in its home country continues to contract, leaving little room for growth. Lawson operates 10,000 stores in Japan. With the expansion, Lawson aims to drive profits above $1 billion.

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?There is a great potential in China,? said Takeshi Niinami, Lawson president/CEO. Chinese localities are sweetening the pot with incentives, too. ?Cities like Dalian are offering zero corporate taxation for five to six years,? he said.

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By the end of 10 years, revenue from Chinese locations is estimated to comprise 20 percent to 25 percent of overall sales at all Lawson stores. The convenience store chain also has its eye on opening locations in India starting in March via a partnership with the Future Group.

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In Japan, Lawson is focusing its efforts on reaching consumers in population groups that are increasing, such as working women and the elderly. For example, by adding more fresh produce, ?we saw more traffic from female (customers) and elderly people,? said Niinami. The chain will add fresh foods to 5,000 of its Japanese stores by February, an increase of around 800 locations.

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Content Subject: International

Formatted Article Date: October 14, 2011

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