Core Viewpoint - My Basket is emerging as a significant competitor to convenience stores like 7-Eleven in Japan, primarily due to its focus on fresh food offerings and competitive pricing, which has led to a noticeable decline in customer traffic for nearby convenience stores [5][6][30]. Group 1: Market Context - The rise of "shopping refugees" in major Japanese cities, where consumers struggle to access nearby grocery stores, has created a demand for smaller supermarkets like My Basket [10][12]. - In 2015, the number of shopping refugees in Japan reached 8.25 million, a 20% increase from 2005, highlighting the growing need for accessible grocery options in urban areas [10][12]. Group 2: Business Model and Strategy - My Basket operates approximately 1,200 stores with plans to expand to 2,500 by 2030 and ultimately aims for 5,000 locations, leveraging its proximity and lower prices to compete with convenience stores [13][35]. - The store's strategy focuses on high-density urban areas, with locations typically within a 3-minute walking distance from residential areas, effectively serving local communities [13][14]. Group 3: Operational Efficiency - My Basket's operational model is characterized by a full-ownership structure, which allows for streamlined management and reduced labor costs, with each store typically staffed by only 2-3 employees [20][29]. - The introduction of a flexible "point work" system enables local residents to work short shifts, enhancing labor efficiency and reducing staffing costs [22][23]. Group 4: Pricing and Product Offering - My Basket's pricing strategy is significantly lower than that of convenience stores, with products like instant noodles priced at 204 yen, approximately 20% cheaper than convenience stores [34][35]. - The store emphasizes fresh food, with fresh products making up 44% of its SKU, which is a key differentiator from traditional convenience stores that have limited fresh offerings [38][39]. Group 5: Competitive Advantage - My Basket's parent company, Aeon, provides a strong backing that allows for competitive pricing through economies of scale and direct sourcing of products, minimizing costs [35][42]. - The store's focus on standardization and efficiency, including a lack of promotional activities and a simplified product range, allows it to maintain low prices while meeting consumer needs effectively [42][44].

Core Insights - My Basket is emerging as a significant competitor to convenience stores like 7-Eleven due to its focus on fresh produce and lower prices, leading to a noticeable decline in customer traffic for nearby 7-Eleven stores [2][9][24]. Group 1: Market Context - The phenomenon of "shopping refugees" in Japan's urban areas, particularly among the elderly, has created a demand for accessible grocery options, which My Basket effectively addresses [5][7]. - In 2015, the number of shopping refugees in Japan reached 8.25 million, a 20% increase from 2005, highlighting the growing need for convenient shopping solutions in densely populated cities [5][7]. Group 2: My Basket's Business Model - My Basket operates approximately 1,200 stores with plans to expand to 2,500 by 2030 and ultimately 5,000 stores, leveraging its proximity and competitive pricing to attract customers [9][28]. - The store's strategy focuses on high-density urban areas, with a typical store located within a 3-minute walking distance from residential and commercial zones, catering to local consumers [9][10]. Group 3: Competitive Advantages - My Basket's pricing strategy is significantly lower than that of convenience stores and even some discount retailers, with products like instant noodles priced 20% lower than convenience stores [26][28]. - The company benefits from the backing of Aeon, a leading retail group, which allows it to leverage economies of scale for cost-effective product pricing [28][29]. Group 4: Operational Efficiency - My Basket employs a unique staffing model with all stores being company-operated rather than franchised, allowing for streamlined operations and reduced labor costs [13][19]. - The introduction of a flexible "point work" system enables part-time employees to work short shifts, enhancing labor efficiency and reducing overhead costs [17][23]. Group 5: Product Offering - My Basket differentiates itself by offering a wide range of fresh produce, with fresh items making up 44% of its total product offerings, compared to convenience stores that have limited fresh food options [30][32]. - The store's SKU count is strategically focused on essential items for single-person households, ensuring that it meets the daily shopping needs of urban consumers [29][30]. Group 6: Future Outlook - My Basket's growth strategy is centered on maintaining low prices and high product availability, which positions it well against traditional convenience stores and larger supermarkets [35][36]. - The company's ability to adapt to consumer needs and market trends will be crucial for its continued expansion and competitiveness in the retail sector [35][36].