The Hard Road for Seven-Eleven’s Fashion Push—Lessons Lost From Ito-Yokado

7-Eleven, the largest convenience store operator in Japan, has recently announced a plan to strengthen its clothing lineup. Specifically, the company plans to develop casual apparel, starting with T-shirts with the “Seven” logo, which were the talk of the town at the Kansai Expo last October.

This is clearly intended to follow in the footsteps of FamilyMart’s casual apparel, known as “Famima Clothing,” which has been performing well in the market. Can apparel really become a new growth engine for Seven?

The king Seven’s anxiety? Unusual focus on apparel

In the past, many chains such as Circle K Sunkus and am/pm competed fiercely in the convenience store industry. But now, the market is dominated by the three major chains: Seven, FamilyMart, and Lawson.

At the top, Seven has reached saturation in domestic store numbers, and growth is beginning to show signs of slowing. It has become difficult for all companies to differentiate their core products such as prepared foods, bento boxes, and sweets. Consumers no longer feel novelty, and increasing sales further is not easy.

Amid this, the success of “Famima Clothing” drew public attention.

The mastermind behind it? The strength of Itochu in “Famima Clothing”

“Famima Clothing,” which started with socks in 2019, quickly gained attention on social media and in the media. Partnering with designer Hirori Ochiai of the fashion brand Facetasm, it has now expanded to T-shirts, blousons, and pants. By 2024, sales reportedly reached 13 billion yen.

Previously, clothing sold at convenience stores was mostly practical items like underwear, dress shirts, socks, and stockings for sudden business trips or overnight stays. Launching casual apparel on a large scale was a groundbreaking development.

For FamilyMart, with total store sales exceeding 3 trillion yen, 13 billion yen is not a figure that affects management. However, the value as a billboard to enhance brand image is extremely high. The king Seven cannot ignore this success.

However, there is a major barrier for Seven to follow the same path: apparel requires a high level of expertise. Behind FamilyMart’s success, the know-how of parent company Itochu Corporation, which has overwhelming strength in the textile business, has been fully leveraged.

Lawson also failed the high wall of year-round sales

Looking at precedents, Lawson has also tried original clothing but cannot deploy it year-round like FamilyMart. They have intermittently released collaborative knits with the popular brand “FREAK’S STORE,” but these remain spot sales. Most recently, in November last year, they released the fifth series: 12-gauge knit (¥2,999 including tax).

To continue in apparel, it is not enough to simply produce items; a precise annual product plan is essential. Knowing when to release what, how long to sell it, and what to introduce next is an endless cycle of know-how that cannot be learned overnight.

T-shirt 5,500 yen! Seven’s bold pricing trap

In the past, Seven had the general merchandise store Ito-Yokado under its umbrella, which could have provided know-how. However, Ito-Yokado has already been sold, and its own clothing sections outside of underwear and socks have been abolished. The know-how for year-round apparel sales has also vanished, and ties to Seven-Eleven have weakened. There is almost no support expected from here.

As it stands, even if the logo T-shirts succeed, they are likely to end up as a one-off spot sale like Lawson’s.

Pricing is also a major challenge. While FamilyMart’s plain short-sleeve T-shirts sell for ¥1,490 (tax included) and long-sleeve plain T-shirts for ¥1,998, Seven-Eleven’s NO COFFEE logo short-sleeve T-shirts are boldly priced at ¥5,500 (tax included). If in-store prices are set similarly, sales may not be easy.

Taking on a challenge is not a bad thing, but if Seven-Eleven is going to venture into casual apparel, it is recommended that the leadership commit to it fully and proceed carefully.