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

Japan's Ministry of Health, Labour and Welfare's advisory panel has outlined a proposal for amending the law to prohibit working more than 14 consecutive days. Under the current system, workers can technically work up to 48 days in a row through a system known as 'four-day-off-per-four-weeks,' while labor agreements also allow for holiday work, meaning there are no effective restrictions on consecutive workdays.

Manhole covers featuring characters from Riyoko Ikeda’s popular manga The Rose of Versailles were unveiled on November 11th at three locations within Kashiwa City, Chiba Prefecture.

Universal Studios Japan (USJ) has announced that the new 'Donkey Kong Country' area will open on December 11th, expanding the 'Super Nintendo World' by 1.7 times.

Japan's Finance Ministry presented a plan on November 11th during the Fiscal System Council to gradually increase the 'teacher adjustment allowance' --currently awarded as a substitute for overtime pay -- from its current 4% of monthly salary to 10% over a span of five years.

The Japan Meteorological Agency (JMA) is currently experiencing issues displaying images from the Himawari weather satellite on its official website. Efforts are underway to identify the cause and restore normal service, but the timeline for recovery remains unclear.

MEDIA CHANNELS
         

MORE Business NEWS

Japan's Fair Trade Commission has issued a recommendation to publishing giant KADOKAWA and its subsidiary, citing violations of the Subcontract Act over 'unjust price cutting' practices involving compensation paid to freelance writers and photographers.

Renowned guitar brand Fender has partnered with the beloved character Hello Kitty in a new collaboration.

The number of corporate bankruptcies across Japan in October surpassed 900 cases, reaching a level not seen in 11 years.

Major izakaya chain operator Watami has acquired Subway Japan in a large-scale acquisition it views as a 'second founding,' aiming to establish a foothold in the fast-food market.

Kioxia Holdings, a major semiconductor firm, has announced plans to seek listing on the Tokyo Stock Exchange between next month and June of next year.

A proposal has emerged to sell the operating company of Tsutenkaku Tower, an iconic symbol of Osaka’s Shinsekai district. As inbound tourism rebounds in the post-pandemic era, questions are rising over the future of this popular landmark.

China is currently experiencing an unprecedented pet boom, with Japanese companies seizing the opportunity to promote pet-related products.

Nissan Motor Co. has announced it will cut 9,000 jobs globally in response to declining business performance.