Convenience store chain Lawson Inc. and drugstore chain Matsumotokiyoshi Holdings Co. said Aug. 24 that they will join forces to launch a new type of outlet they hope will boost consumer demand.

Lawson, Japan's second-largest convenience store chain, and Matsumotokiyoshi, the top drugstore chain, will set up a joint venture by the end of this year to operate outlets combining convenience store and drugstore formats, they said.

Lawson President Takeshi Niinami said the two companies plan to start opening the outlets in spring and build 1,000 in the next five years.

The decision came after government deregulation in June allowed sales of medicines at convenience stores and other stores on the condition that certified sales clerks are present on behalf of pharmacists.

The envisioned new stores are likely to be larger than conventional convenience stores, according to sources close to the two companies.