7-Eleven and Lawson Hit the Brakes in China After Decade-Long Push

After ten years of aggressive expansion in China, Japan's convenience store giants are pumping the brakes. 7-Eleven and Lawson are both falling significantly short of their 2026 store-opening targets, marking a dramatic shift from the relentless growth that once defined their China strategy.

The Numbers Tell the Story

7-Eleven aimed to open 500 new stores in China this year but will likely manage only around 300. Lawson is facing a similar shortfall, hitting roughly 250 stores against a 400 target. That's a 40% and 37% miss respectively—numbers that would have been unthinkable just three years ago.

But the pain goes deeper than just new openings. Existing stores are seeing daily sales drop 15-20% compared to last year, with first-tier cities like Shanghai and Beijing hit hardest. For companies that built their reputations on consistent, predictable growth, these figures represent a fundamental challenge.

Local Players Rewrite the Rules

While Japanese chains struggle with traditional metrics, Chinese competitors have fundamentally changed what convenience means. Local chains like Bianlifeng and Meiyijia now offer 30-minute delivery as standard, turning the Japanese model of "location, location, location" on its head.

The price gap is equally stark. The same soft drink costs 8-10 yuan at Japanese stores versus 5-7 yuan at local competitors—a 30-40% difference that hits hard when consumers are tightening their belts. Chinese chains have also mastered mobile payments and app-based ordering in ways that make traditional convenience stores feel almost antiquated.

What This Means for Global Retail

This isn't just a Japan-China story. It's a preview of how local innovation can outpace global brands, even those with decades of operational excellence. The Japanese convenience store model—clean, efficient, predictable—was revolutionary in the 1990s. But Chinese consumers now expect 20-second mobile payments and 20-minute delivery windows.

For investors watching retail trends, the implications are clear. Market entry strategies built on brand recognition and operational efficiency may no longer be sufficient. The new competitive advantage lies in understanding local digital behaviors and delivery expectations that didn't exist when these expansion plans were first drawn up.