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Lean Retailing (Seven-Eleven Japan Case

Instructor: Ryan Zhao


Copyright Ryan Zhao @ 2013


the Japanese 7-Eleven's first store opened in Tokyo • Japanese 7-Eleven rapidly became stronger in 1987 • In 1992. 7-Eleven Japan took over parent company • Now.000 retail outlets 2/13/2014 Copyright Ryan Zhao @ 2013 2 . Texas. first known as Southern Company • By 1964. a total of more than 23.History • Founded in 1927. birth of ‘7Eleven’ • 1972. Dallas. opening hours extended to 7am to 11pm. it operates in four continents over 20 countries and regions.

Challenges & Opportunities That SEJ Faced • Threatened by the emergence of departmental stores and supermarkets • The distribution of goods within Japan is traditionally complex • Social change in Japan • Outdated inventory management strategy 2/13/2014 Copyright Ryan Zhao @ 2013 3 .

Mission and Core Value • Mission Statement – offer time-conscious customers a full range of products and services that meet their ever-changing daily needs through quality. The company treats employees with dignity and respect the company also recognizes franchisees and suppliers as business partners. friendly and pleasant environment • Core Values – customer-preferred convenience store which value customer expectations through quality. selection and value in a safe. In addition. speed. selection and value safe and pleasant environment. the company strives to be a good corporate citizen 2/13/2014 Copyright Ryan Zhao @ 2013 4 . speed.

Three Principles of Business Strategies • Reduction of lost opportunity – Customers got the right goods available at the right time • Supply of products just in time and in the quality required – Understand customers future needs and products that are in demand supplied on a just-in-time basis. eliminating dead-items and low-selling items and replacing them by fast selling ones • Franchise strategy – Design an efficient operational systems to support planning and delivery of products 2/13/2014 Copyright Ryan Zhao @ 2013 5 .

Pattern and Selective Attention 2/13/2014 Copyright Ryan Zhao @ 2013 6 .

000 products each store 2/13/2014 Copyright Ryan Zhao @ 2013 7 .Question: How to increase sales? • Target Market – – – – Men age 5-60 shop 3 times a week Students and single men shop 4 times per week Working women shop 2 times per week Housewives and female teens visit 2 times per week • 900 individual customers visit 7-Eleven daily • Each of them spend approximately 700 Yen per visit • Approximately 3.

2013 2/13/2014 Copyright Ryan Zhao @ 2013 8 .com extracted Nov 25.Item by Item Management Source: http://www.7andi.

com extracted Nov 25.Temperature-separated Combined Distribution Centers Products from different suppliers and manufacturers are loaded onto the same truck and delivered to stores. 2013 2/13/2014 Copyright Ryan Zhao @ 2013 9 . facilitating the efficient delivery of fresh products to stores Source: http://www. products are maintained at the appropriate temperature from supplier and manufacturer to store.7andi. With temperature-separated combined distribution.

7andi. 2013 2/13/2014 Copyright Ryan Zhao @ 2013 10 .Product Assortment that Reflects Customer Needs Source: extracted Nov 25.

Service Development Source: http://www. 2013 2/13/2014 Copyright Ryan Zhao @ 2013 11 extracted Nov 25.