FamilyMart Uny and Don Quijote agree to capital tie-up

Convenience store group FamilyMart Uny Holdings has stepped up co-operation with Japan’s largest discounter, Don Quijote Holdings, to open a joint store.

Like other Japanese convenience stores, which are open 24 hours and sell everything from underwear to freshly brewed coffee, FamilyMart has struggled with falling customer numbers in the past two years amid competition from discount drugstores and problems with labour shortages.

It merged with Uny in 2016, and last year sold a 40 per cent stake in its general merchandise unit to Don Quijote. The company is hoping the joint convenience store, which has opened in Tachikawa, Tokyo, will help rekindle consumer interest. Two other stores are also opening this month.

Don Quijote, also open around the clock, is known for stocking its stores floor-to-ceiling with an eclectic mix of products such as leopard-print rugs to designer goods. Popularly known as Donki, it has delivered 28 years of unbroken sales growth.