Introduction
"Lately, prices have been rising so much that I want to use convenience stores, which have everything I need, but I'm worried about my wallet..."
Many people probably have that kind of problem.
Now, a new type of store has appeared in Tokyo that aims to meet such consumer needs. That is the urban-style small store, "Trial GO"is.
Why are they trying to create a "convenience store cheaper than a supermarket" in Tokyo, an area where labor costs and rents are extremely high? There's a meticulous strategy behind it, utilizing cutting-edge technology, rather than simply engaging in price wars. This article will explain...trialThis article provides a clear explanation of the true nature of the "low-cost operation" strategy employed by [company name].
The core of Trial GO
Breaking down the "high-cost structure of urban areas" with technology
In conclusion, what TrialGO aims for is"Thorough reduction of sales, general, and administrative expenses through DX (Digital Transformation)"That's it.
Typically, expanding a store in a major city like Tokyo faces significant obstacles due to high rent and labor costs. However, TrialGO is trying to overcome these challenges not through sheer willpower, but through technology.
Their strategy is not to operate with staff like a traditional convenience store,"A system that can function even without people."The goal is to establish a structure where the cost savings are passed on to the product price, thereby maintaining competitiveness as a discounter (low-price retailer).
How exactly do they achieve such low prices?
Three key points
So, what specific methods are being used to reduce costs? The main points are the following three:
① Thorough reduction of manpower through "remote monitoring"
What's most shocking is their store operation system. At Trial GO, camera footage installed on the ceiling is monitored by staff at their headquarters in Fukuoka City.
- Automation of inventory managementHead office staff can detect when the shelves are empty via video and contact the delivery person. This eliminates the need for store employees to manually check the shelves and place orders.
- Reduced working hoursWhile a typical convenience store operates 24 hours a day and employs a total of 48 person-hours (*), Trial GO aims to operate with approximately 30 person-hours.
(*Man-hour: The amount of work one employee can complete in one hour.)
② Introduction of self-checkout and facial recognition systems
We have fully adopted "self-checkout" systems, eliminating the need for staff at the checkout counter. Furthermore, by introducing a "facial recognition system" in collaboration with NEC, we are working to reduce checkout lines and improve operational efficiency. Through this, we are pursuing a system that can operate without the need for staff to be constantly present.
③ Strategic use of the distribution network (collaboration with Seiyu)
Instead of building everything from scratch, we are utilizing the infrastructure of Seiyu, a general merchandise store that we acquired in July 2024.
- Logistical efficiency improvements: Utilizing Seiyu's delivery network located in Tokyo.
- Product supply: We reduce delivery costs and time by sourcing fresh foods such as bento boxes, prepared foods, and sushi from nearby Seiyu stores.
Things to know about the realities and precautions of expanding into Tokyo
However, even with the best technology, the barriers to entry in Tokyo remain incredibly high. The article presented some interesting data.
[Fukuoka vs. Tokyo: Cost Difference]
- Wages: The average monthly wage in Tokyo is approximately 403,000 yen, while in Fukuoka Prefecture it is approximately 308,000 yen (a difference of about 30%).
- Rent: Rent per tsubo (approximately 3.3 square meters) tends to be at least 60% higher in major areas of Tokyo compared to Fukuoka.
This cost difference is actually reflected in the prices of the products. For example, their signature "Pork Loin Cutlet Rice Bowl" costs 299 yen in Fukuoka and suburban stores, but it's 343 yen at the Nishi-Ogikubo Station North store in Tokyo, a price increase of 44 yen.
Due to physical constraints such as delivery costs, it is difficult to offer "exactly the same price everywhere." However, the fact that it is still cheaper than convenience stores and also sells fresh food is a major attraction for people who feel their living expenses are "hard."
Summary: Continuously adapting to change is a condition for "survival."
In the business world, the retail industry is called a "change-adapting industry."
Just as Seven-Eleven once swept across Japan with its concept of being a "convenient and useful store," and Aeon's "My Basket" rapidly grew by solving the problem of people in urban areas who had difficulty accessing shopping, businesses cannot survive unless they change their form to meet the needs of the times.
TrialGO's challenge is not simply about opening a "discount store." It addresses the questions of "How can we achieve low prices in the high-cost environment of Tokyo?" and "A convenience store cheaper than a supermarket?" through measures such as remote monitoring and restructuring of the delivery network.The answer is DX (Digital Transformation).This is also a grand experiment in which we attempt to derive and implement a solution.
Isn't the same true in our work? Instead of giving up on the challenges before us and accepting them as unavoidable, we should adopt a perspective that asks, "Can we structurally change things using technology?" We should then convert the time and costs saved through efficiency improvements into value for the customer (in this case, a balance of low prices and convenience).
When the environment changes, the right answer changes too. In the face of headwinds such as recession and rising prices, having the courage to question conventional wisdom and rebuild systems from the ground up will be the key to seizing opportunities in the next era.
