Many FamilyMart Stores Less Profitable in Biz Hour Cut Trial

Economy

Tokyo, Feb. 4 (Jiji Press)--Japanese convenience store chain FamilyMart Co. <8028> said Tuesday that operating profits fell at 59 pct of some 600 outlets that halted late-night operations in a trial to shorten business hours.

Announcing the results of the experiment conducted in October-December last year, FamilyMart also said it will start allowing franchise stores to shorten service hours from June 1 by halting late-night and early-morning operations. Applications will be accepted from March 1.

At stores that suspended late-night operations every day during the trial, labor costs fell 11 pct on average year on year. Their sales dropped 6.7 pct, leading to the operating profit declines.

But 41 pct secured profit growth.

Meanwhile, 57 pct of the stores that did not participate logged profit growth, while the remaining 43 pct saw their profits fall.

[Copyright The Jiji Press, Ltd.]

Jiji Press