As my last post about 7-Eleven was so liked, I decided to post my part 2 on this thread.
In part 2 of my "The Kings of Convenience series" I explore FamilyMart's history, if its a company worth buying and what the future holds for (link to post HERE)
TLDR: FamilyMart is the world's second largest convenience store, only bested by 7-Eleven, with almost 2,7000 stores worldwide. Operationally, the company has been able to expand a lot in Southeast Asia, and is the leader in many markets. However, its profits have lagged behind its peers with an average profit margin of 7-9% the last 7 years (compare that to 7-Eleven's domestic profit margin of 25-33%). To combat this, the company aims to be the world leader in unmanned convenience stores, with 1,000 stores already planned in Japan by 2024.
FamilyMart is since July 8th, 2020 fully owned by the Japanese trading company ITOCHU. ITOCHU is one of Japan's largest companies, with its divisions stretching in everything from IT-solutions to oil refineries. Hence, FamilyMart's revenue only has a minor impact on ITOCHU's balance sheet.
FamilyMart is however not irrelevant to ITOCHU’s growth. As the CEO of ITOCHU has stated, the chain is the most important part of the company's consumer facing strategy. As FamilyMart is vertically integrated with many of ITOCHU's other ventures, such as food distribution, IT-Systems and clothes manufacturing, any successful innovation in FamilyMart will definitely have a multiplier effect on ITOCHU's overall profit.
Now I'm curious what you guys think about FamilyMart and ITOCHU:
In part 2 of my "The Kings of Convenience series" I explore FamilyMart's history, if its a company worth buying and what the future holds for (link to post HERE)
TLDR: FamilyMart is the world's second largest convenience store, only bested by 7-Eleven, with almost 2,7000 stores worldwide. Operationally, the company has been able to expand a lot in Southeast Asia, and is the leader in many markets. However, its profits have lagged behind its peers with an average profit margin of 7-9% the last 7 years (compare that to 7-Eleven's domestic profit margin of 25-33%). To combat this, the company aims to be the world leader in unmanned convenience stores, with 1,000 stores already planned in Japan by 2024.
FamilyMart is since July 8th, 2020 fully owned by the Japanese trading company ITOCHU. ITOCHU is one of Japan's largest companies, with its divisions stretching in everything from IT-solutions to oil refineries. Hence, FamilyMart's revenue only has a minor impact on ITOCHU's balance sheet.
FamilyMart is however not irrelevant to ITOCHU’s growth. As the CEO of ITOCHU has stated, the chain is the most important part of the company's consumer facing strategy. As FamilyMart is vertically integrated with many of ITOCHU's other ventures, such as food distribution, IT-Systems and clothes manufacturing, any successful innovation in FamilyMart will definitely have a multiplier effect on ITOCHU's overall profit.
Now I'm curious what you guys think about FamilyMart and ITOCHU:
- Would you buy the ITOCHU stock?
- Do you think we'll see FamilyMart in the western hemisphere in the near future?
- Does FamilyMart have a chance to compete out Lawson or 7-Eleven?