News On Japan

Costco Expands Rapidly Across Japan

Shiga, Aug 28 (News On Japan) - Costco stores are opening across Japan, sparking hopes for regional revitalization while also raising concerns among local residents about the potential impact on daily life, particularly traffic congestion.

Shiga Prefecture welcomed its first Costco on August 23, with the opening of the Higashiomi Warehouse Store. On the first day, about 800 people lined up before dawn, prompting the store to open three hours earlier than scheduled at 5 a.m.

The 10,000-square-meter store quickly filled with customers, creating a buzz from the moment the doors opened.

“I only came to buy eggs because they’re cheap. I even waited in line for two days,” said one member. Another added, “Eggs are 198 yen for 20, which is quite a bargain.”

Amid rising prices, the price of eggs at Costco stood out, selling for 198 yen (tax included) for 20 eggs as of August 23.

“It was so cheap, I ended up buying a lot more than usual—almost double,” another customer shared.

The Higashiomi store is situated in an area surrounded by rice fields, about one kilometer from the Yokaichi Interchange on the Meishin Expressway, a location with significant traffic.

The opening of this Costco was made possible by the efforts of the local government in Higashiomi, which actively sought to attract the retailer. Yuichiro Marutani, a professor of International Marketing at Tokyo Keizai University, who has studied Costco’s global operations, points to local collaboration as a key factor in the success.

“The secret to Costco’s popularity lies in its unique product selection. Seventy-five percent of the 4,000 items are consistent, while the remaining 25 percent regularly change, keeping things interesting for customers,” Marutani explained.

Another expert highlighted Costco’s significant impact on local employment.

“Costco’s hourly wage of 1,500 yen, uniform across the country, is a very high standard,” said Hiroshi Masaki of Teikoku Databank’s Information Management Division.

The local government’s corporate support department sees Costco as a catalyst for economic growth.

“We are an inland industrial region, so we believe Costco’s presence will significantly change the flow of people. We aim to use this to revitalize and enliven our city,” said Hiroomi Ikedo, Chief of the Corporate Support Section in Higashiomi.

However, there are some concerns.

“There were worries about the impact on daily life, such as customers entering residential roads,” Ikedo added.

When talking to local residents…

“I’m concerned about the traffic congestion. It might become a problem,” said Kazuki Sakai, a local fishmonger.

Another resident commented, “This road has become completely gridlocked due to the traffic.”

While the arrival of Costco brings excitement, some residents are anxious about potential traffic issues.

In addition to Higashiomi, Costco continues to open stores across the country. On August 24, the Nanjō Warehouse Store in Okinawa saw more than 1,000 people lining up before dawn for its opening. We also spoke to Koko, a well-known Costco enthusiast who was there to celebrate the opening.

“Costco is like an accessible overseas experience! It doesn’t even feel like Japan to me anymore,” Koko said.

She added that Costco’s atmosphere is similar to its stores abroad, making it feel like a mini overseas trip.

“At Costco, you can buy premium-grade beef at prices comparable to pork if you buy in bulk,” she shared.

Source: MBS

News On Japan
POPULAR NEWS

The Japan-set historical series "Shogun" has won a record number of prizes at the 76th Emmy Awards in the US, including best drama and best actor. (NHK)

A scorching late summer heatwave gripped Tokyo over the long weekend, coinciding with the Asakusa Samba Carnival, where dancers twirled through intense heat.

Japanese government data show the number of senior citizens in the country and the size of its elderly working population have both hit all-time highs. (NHK)

The Tokyo Metropolitan Government has announced plans to construct a 150-meter-high, 250-meter-wide fountain in Odaiba Seaside Park, inspired by the Somei Yoshino, the city's official flower.

Farmers in Japan's rice-producing regions have started harvesting and shipping this year's crop, helping to ease a nationwide shortage. (NHK)

MEDIA CHANNELS
         

MORE Business NEWS

There are approximately 2 million visually impaired individuals in Japan and 300 million worldwide. Due to their impaired vision, going out often comes with the risk of accidents. In response to this issue, Honda's first startup Asirase, led by CEO Chino, developed a navigation device called 'Ashirase' to assist visually impaired individuals in walking safely.

Japanese food businesses are intensifying their expansion efforts in China, where consumption has stagnated due to rising food prices. We investigate the factors driving these Japanese companies to accelerate their operations in the Chinese market.

Pan Pacific International Holdings, the operator of Don Quijote, has announced its entry into the low-cost SIM card market. The company will offer plans starting at 770 yen per month for 3GB, using NTT Docomo’s network.

Ricoh announced on September 12th that it will reduce its workforce by approximately 2,000 employees globally by March 2025. With the market for office equipment shrinking due to the advancement of digitalization, the company plans to restructure its overseas sales and service operations while focusing its management resources on supporting digital transformation (DX).

A Bank of Japan policy board member has signaled that the central bank should raise its short-term interest rate to at least around one percent in stages for price stability. (NHK)

Hair salon bankruptcies in Japan are on the rise, with 139 cases recorded between January and August 2024, a significant increase from previous years. Factors such as rising competition, material costs, and labor expenses are contributing to this surge. Despite these challenges, some salons are finding ways to thrive by adopting cost-effective strategies.

Foreign influencers are sparking fierce competition as they quickly sell Japanese gold jewelry using nothing more than a smartphone.

The announcement of the iPhone 16 has sent sellers flocking to the second-hand iPhone market in Japan, with iPhones 12 and 13 going for less than half the price of a new model.