Japanese convenience store operator Sunkus and Associates Inc. said Wednesday it will set up a joint venture with five other firms from Jan. 31 to operate an e-commerce supermarket.
The new company, e-Convenience Co., will open its Web site and distribution center in March and initiate services in a few Tokyo wards from April 1. It will be expanded to Yokohama next year and other major cities in 2002, company officials said.
The new company will be capitalized at 300 million yen, with Sunkus holding a 20 percent stake. Speed Group, a venture company for online distribution businesses, will own 50 percent, and Softbank Investment Corp. and Hikari Tsushin Inc. a telecommunication subscription agency, 10 percent each.
Supermarket chain Uny Co. and convenience store chain Circle K Co. will each hold 5 percent stakes. The six companies will invest 1 billion yen in fiscal 2000 and 3 billion yen in fiscal 2001. The new company will offer fast delivery to members by taking Internet, telephone and fax orders.
Delivery service will cover about 4,000 grocery items, including fresh and processed foods, detergents and pet food. Housewares and nursing goods for the elderly and infants will also be available. The delivery fee will be set at 500 yen, but the firm will offer free delivery service for purchases over 10,000 yen. Payment will be accepted by credit card, bank transfer or direct payment at Sunkus and Circle K convenience stores.
The new firm's sales are expected to total 600 million yen in fiscal 2000 and jump to 6.2 billion yen in fiscal 2002, the officials said.