Japan convenience store operators expand digital signage to spur purchases

In Japan, the three largest convenience store chains are expanding their use of digital signage to boost sales and generate additional advertising income, according to Kyodo news agency. FamilyMart Co., which began offering digital signage in its approximately 12,000 stores in 2021, has modeled its approach on U.S. retail giant Walmart Inc., which generates revenue through various avenues including digital advertising.

FamilyMart places 15-second advertisements above checkout counters, and the company claims that the screens have increased customer interest in purchasing advertised items and services. About 80 percent of the revenue generated from these screens since the fiscal years ending in February 2024 and February 2026 has come from companies and local governments offering products and services that are not sold in FamilyMart stores.

The company aims to double its digital signage revenue by the fiscal year ending in February 2029 compared to the period ending in February 2027, as stated by a spokesperson. Seven-Eleven Japan Co. has installed digital signage in roughly 3,700 stores and plans to expand to around 8,700 outlets by the fiscal year ending in February 2027.

The convenience store chain has formed a joint venture with advertising giant Dentsu Group Inc. and CyberAgent Inc. to deliver customized advertisements based on store inventory levels and time slots, leveraging their expertise in creative design and artificial intelligence technologies. Lawson Inc. currently has digital signage in around 100 stores, and Mitsubishi Corp. and KDDI Corp., which jointly control Lawson, have formed another joint venture to run this service.

Lawson plans to offer disaster prevention information and entertainment content through the screens and aims to increase the number of stores using this technology to 3,000 by summer 2027.