May 17, 2020

Japanese convenience chain Lawson is primed for growth

Lawson
convenience stores
CEOs
CEOs
Frazer Jones
3 min
A Lawson convenience store in Kobe, Japan [IMAGE CREDIT: TK Kurikawa // shutterstock.com]
As one of the largest convenience store chains in the world—the second largest in Japan behind global giant 7-Eleven with more than 12,000 locatio...

As one of the largest convenience store chains in the world—the second largest in Japan behind global giant 7-Eleven with more than 12,000 locations—Tokyo-based franchised chain Lawson has already made a massive impact since first entering the Japan market in the 1970s. But its growth is far from over. According to Lawson executives, there is still massive growth potential for the convenience store brand, and Lawson intends on making the most of that potential.

RELATED CONTENT: Top Ten Convenience Stores Around the World

As Financial Times reports, Lawson has big plans for the chain in the near future. Under the guidance of new CEO Genichi Tamatsuka, Lawson is preparing to open 1,200 outlets in Japan this year, while closing 750 of its lower performing stores. Even with these store closings, that’s still growth at a rate of more than one store per day, with overall goals of optimizing the franchise for shops in the most strategic positions possible. According to Tamatsuka in a recent interview, the number of shops in Japan has actually decreased in the last 30 years as the market has become more competitive. In other words, for a market chain that knows how to compete, there should be plenty of room to expand even in a seemingly saturated market:

 Let’s say there are 1 million total stores in Japan, we are still merely 5% of the number of stores. Many people tell me, especially investors, that we’re already reaching saturation. That is not so – that depends on how much we can continuously change to meet the market needs.

 

RELATED CONTENT: What FEMSA’s $850 Million Texas expansion could mean for US competitors

In this interview Tamatsuka noted that Lawson’s structure is appealing to a sales demographic in Japan that has changed drastically from generations past, drawing on aging shoppers who can’t make it as frequently to larger hub supermarkets and busy young people who don’t have as much time to devote to preparing family meals each day:

We do believe that this format of neighborhood convenience and food stores really has potential because Japan goes through winter for four months, and everybody talks about an ageing society, smaller families, and the heavier workload. In my family, for example, my grandmother would go to the supermarket, buy everything, and cook for eight people. It’s rare that you see that now. In this context, convenience stores or neighborhood stores have gotten positive customer feedback because they don’t have time to go to the big supermarket which is farther away.

 

RELATED CONTENT: 7-Eleven partners with Postmates to roll out delivery service in California test markets

Tamatsuka also attributes Lawson’s recent growth—and potential for continued growth—to its willingness to partner with other strong businesses outside of the food and beverage world like fashion chain UNIQLO and telecom operator NTT Docomo for loyalty programs and distribution that use each business’s strength to propel both forward:

Success is not achieved just by chasing opportunities, but collaborating, like you said, with Docomo and Sakawa, to establish the last one mile of infrastructure in all of Japan. I think in this business you need two things: we have to continuously improve the basics, and the simple things, which is the foundation of the business, and then keep challenging ourselves and looking for innovation.

 

From quality control to the potential for international expansion, Tamatsuka has a lot to say in his Globus Vision. Check out the whole interview here.

[SOURCE: The Worldfolio; Financial Times]

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Jun 13, 2021

Tyson Foods 2050 net-zero target with no bargain on taste

TysonFoods
Food
protein
Agriculture
Helen Adams
3 min
The global protein company, Tyson Foods, has recognised its responsibility to the environment and aims to reduce emissions

Tyson Foods, a leading global protein company, aims to achieve net-zero greenhouse gas emissions across its global operations and supply chain by 2050. 

The company supplies 20% of the USA’s beef, pork and chicken and is best known for products such as Jimmy Dean, Hillshire Farm and BallPark.

As the first U.S.-based protein company to have an emissions reduction target approved by the Science Based Targets initiative (SBTi), this ambition, in conjunction with the release of the company’s fiscal year 2020 Sustainability Progress Report, underscores the company’s commitment to help combat the urgency of the growing climate change crisis. 

 

Food giant Tyson will meet net-zero targets

The high level of meat and diary that humans consume is fuelling climate change for many reasons:

  • Gassy cows, sheep and goats are responsible for up to 14% of all greenhouse emissions.
  • 75% of agricultural land across the world is used for animal agriculture. This includes land for the animals to graze upon, as well as the land used for the crops which animals eat to grow in. The amount of land required leads to deforestation.

The move to net-zero is an expansion of Tyson Foods current science-based target of achieving a 30% GHG emissions reduction by 2030, which is aligned with limiting global temperature rise to 2.0c. 

As a global organisation with 239 facilities and 139,000 employees worldwide, achieving net-zero emissions is a large task, which will require a collective effort from every team member, in addition to external stakeholders.

Tyson Foods’ goals include:

  • For emissions to align with limiting global temperature rise to 1.5℃, consistent with the Paris Agreement, by the end of 2023.
  • Expanding the company’s current 5m acre grazing lands target for sustainable beef production practices by 2025.
  • Continuing work to eliminate deforestation risk throughout its global supply chain by 2030.

 

Tyson foods supports accountability and transparency

“We believe what good food can do for people and the planet is powerful. Our net-zero ambition is another important step in our work toward realising our aspiration to become the most transparent and sustainable food company in the world,” said Donnie King, Tyson Foods President and CEO. 

“At Tyson Foods, we believe progress requires accountability and transparency and we are proud to exemplify that as we work to achieve net-zero greenhouse gas emissions by 2050,” said John R. Tyson, Chief Sustainability Officer, Tyson Foods. “As the first U.S.-based protein company in the food and beverage sector to have an emissions reduction target approved by the Science Based Targets initiative, we hope to continue to push the industry as a leader and remain committed to making a positive impact on our planet, with our team members, consumers and customers, and in the communities we serve.”

Tyson Foods’ new ambition, along with the company’s existing sustainability goals, is aligned with the UN Sustainable Development Goals, which include:

Goal 2: ‘End hunger, achieve food security and improved nutrition and promote sustainable agriculture’. 

Goal 15: ‘Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss.’

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