7-Eleven prices its food to move near expiration | #AsiaNewsNetwork

7-Eleven prices its food to move near expiration | #AsiaNewsNetwork
(Photo: Klook)
(Photo: Klook)
Published 17 May 2019

TOKYO (Yomiuri Shimbun/ANN) —  Major convenience store chain Seven-Eleven Japan Co. will virtually mark down “bento” boxed meals and other food items with only a few hours of shelf life remaining, starting in autumn this year, it was learned Friday.

 

Industry rival Lawson Inc. will do the same at some outlets beginning in June on a trial basis, Jiji Press reported.

The measures are aimed at reducing food loss and also improving profitability at franchise stores, by reducing costs to dispose of food waste, most of which are currently borne by the stores.

At Seven-Eleven Japan, effective markdowns will be applied to several hundred food items including boxed meals and rice balls with only a few hours left before their shelf life expires, informed sources said.

Customers who buy such items will get added points under the “nanaco” e-money program of Seven & i Holdings Co. , the parent of Seven-Eleven Japan. The cost of the extra points will be shouldered by the chain’s headquarters, the sources said.

The measure will be introduced at some 20,000 outlets across Japan, including franchise stores.

While Seven-Eleven Japan has not yet decided how many points will be offered for the measure, it plans to set the level at around several percent of the retail price, the sources said.

Currently, Seven-Eleven Japan outlets in principle dispose of many boxed meals and some other items two hours before the end of their shelf life. The rule will be kept intact, but outlets will give points to encourage customers to buy food items with just a few hours of shelf life.

Some franchise stores of major convenience store chains, including those of Seven-Eleven Japan, sell food items at discount prices before disposing of them as waste.

Since the headquarters of convenience store chains have not been keen on such discounts due to concerns about the effect on profitability, however, a majority of outlets have refrained from the practice.

By helping to improve profitability through the effective discount, Seven-Eleven Japan aims to ease frustration among store owners not happy with its round-the-clock policy amid a labor shortage, the sources said.

Meanwhile, Lawson will give 5 points per ?100 purchased to customers who buy food items with only a few hours of shelf life left, as an experiment, informed sources said.

The trial will be conducted at all stores in Ehime Prefecture, western Japan, and Okinawa Prefecture, southern Japan. The company will consider whether to introduce the step nationwide after looking at the results.

http://the-japan-news.com/news/article/0005747648