Convenience stores of the future will feature robots that not only stock shelves but also deliver products to customers in the office buildings where the outlets are. Checkouts will be done via smartphone.

That reality will come to Tokyo this coming spring, according to leading convenience store chain operator Lawson Inc.

It is working with its owner stockholders, trading house Mitsubishi Corp. and cellphone carrier KDDI Corp., to create fully automated outlets.

But what synergy the companies can create remains unclear at this point.

A key problem that can be addressed with advances in technology is the chronic labor shortage that has plagued industrial sectors for years.

The issue is especially pressing for convenience store chains that operate around the clock, meaning they never close. Finding staff to work the graveyard shifts was hard from the start.

By using the latest new technologies and services based on artificial intelligence (AI), “convenience stores of the future” will not require human input.

Two futuristic outlets will open on a trial basis in a building in the Takanawa district, where KDDI will move its headquarters, Lawson said.

AI cameras will display product recommendations on monitors inside the stores based on customers' information.

Equipping the outlets with the latest technology will cut work output by 30 percent, the companies said. They projected a revenue increase of at least 10 percent at each “futuristic” store by fiscal 2030.

KDDI said it is looking for new opportunities because its mainstay communications business is not likely to grow as Japan’s population shrinks.

KDDI operates around 2,000 shops across Japan, whereas Lawson has 14,600 outlets, seven times as many.

The cellphone carrier is hoping its interface with consumers at Lawson stores will help it sell a flat-rate subscription service that offers coupons and other benefits to members.

KDDI will also enhance its “Ponta” point cashback reward system, which partners with Lawson, in the hope of regaining ground against other mobile carrier rivals in the fight to win new customers.

“We hope to provide a new type of added value that will emerge from the merger of convenience stores and communications,” said KDDI President Makoto Takahashi. “We hope to realize a situation where people find something interesting when they go to a convenience store.”

A QUESTION OF SYNERGY 

In August, KDDI acquired about 500 billion yen ($3.5 billion) worth of Lawson’s shares through a tender offer. It was KDDI’s most expensive acquisition to date. It made KDDI the only mobile carrier to have a convenience store chain under the umbrella of its corporate group.

Mitsubishi and KDDI each hold 50 percent of Lawson’s shares in the convenience store chain’s new management structure.

The 50:50 partnership leaves unclear which company will take the initiative in management.

Some insiders already see a problem.

The idea for the new setup emerged in May last year when Mitsubishi, Lawson’s parent company at the time, approached KDDI, which is strong in the digital field, with a proposal for the mobile carrier to have a say in Lawson’s management.

Mitsubishi’s initial plan was based on an assumption that yet another company would be involved in Lawson’s management.

A document that KDDI released in February said the other company declined the offer last December as talks on the issue were being held.

Informed sources said the company in question is Eneos Holdings Inc., a leading oil wholesaler.

Initially, KDDI was not even in the running to hold 50 percent of the shares. But with Eneos’ exit, it ended up having to raise its contribution ratio, which necessitated it play a more active role in Lawson’s management. And then there is Mitsubishi, which is the other 50-percent shareholder.

“It wasn't clear from the outset who would be taking the leadership role and what goal KDDI was going to pursue,” said Satoru Kikuchi, a senior analyst with SMBC Nikko Securities Inc.

KDDI is under pressure to deliver results, given the sheer size of the project.

“KDDI will help its investment target as long as it plays the role of a supporter,” Kikuchi said. “But the company has little experience in the retail business. So, what synergy it can create as a communications company remains to be seen.”

(This article was written by Sho Ito and Kenro Kuroda.)