FamilyMart and Lawson, two of Japan's leading convenience store chains, have announced they will cease magazine sales starting March 2024, citing persistent financial difficulties associated with magazine distribution. This decision will affect approximately 30,000 stores across the nation, significantly altering the market for printed publications.
The move is primarily attributed to the rise of internet usage, which has led to declining interest in physical magazines. Increasing regulations on truck drivers' working hours, coupled with surging fuel costs, have made magazine distribution unprofitable. The combined pressures have resulted in many convenience stores like FamilyMart and Lawson facing chronic red ink.
According to Tohan, the wholesaler responsible for magazine distribution, they will transition the delivery operations from major players like Japan Publishing Distribution to these convenience store giants, but it's becoming clear now they cannot sustain the service. With concerns mounting over distribution costs, it is anticipated this will particularly impact rural areas where residents rely heavily on convenience stores as their only source for magazines.
One Tokyo-based publisher's sales representative voiced deep concerns over this significant shift, stating, “The cessation of magazine sales at convenience stores is a matter of life and death for publishers.” He stressed the importance of convenience stores, saying, “There are many residents for whom convenience stores are the only place to buy magazines.”
The potential rise of 'magazine refugees', referring to individuals who will have no means to purchase magazines due to the closures, raises alarms about the continued viability of print media distribution. The effects are far-reaching, creating an even more challenging environment for publishers already grappling with declining sales. The publishing culture is at risk, with surveys showing alarming statistics: nearly 28% of municipalities across Japan currently lack any bookstores, making convenience stores the last bastion for magazine availability.
While FamilyMart and Lawson plan to discontinue magazine sales, Seven-Eleven is taking the opposite approach. A representative from the company remarked, “We believe it is important to continue handling publications as the number of places to buy them is decreasing.” This indicates Seven-Eleven’s commitment to maintaining and even enhancing the availability of printed media within their network of stores. They are continuing to work with Tohan for seamless distribution.
Many see the widespread cancellation of magazine sales as indicative of broader changes within the retail and publishing industries. Laws surrounding the simultaneous release of publications, combined with strict regulations about distribution, add to the pressures convenience stores face when handling magazine inventories.
Some stores are even exploring alternatives to sustain magazine sales. Lawson, for example, has begun implementing initiatives to support access to books. They are offering services for customers to order books through specialized machines, leveraging their footprint to serve communities missing brick-and-mortar bookstores. Some municipalities are piloting projects with Tohan and other publishers to investigate how best to create access to reading materials, such as selling books through libraries.
The transition away from magazine sales marks another chapter in the evolution of both the convenience store model and the publishing industry. Retailers are challenged to adapt to changing consumer behaviors highlighted by digital innovations.
This shift also casts doubt on the sustainability of print media as we continue to see more news and entertainment transition online. Publishers and retailers alike must find ways to keep relevant, ensuring they meet the changing demands of consumers.
With the clock ticking down to March 2024, the full ramifications of this decision will unfurl, impacting both everyday consumer-access to magazines and the economic viability of those who publish them. The future of print media, particularly magazines, depends on addressing the underlying issues and safeguarding the channels through which communities obtain their reading materials.