News On Japan

Costco Expands Rapidly Across Japan

Shiga, Aug 28, 2024 (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

Record rainfall caused 19 rivers to overflow across Fukui Prefecture, flooding roads and homes, triggering landslides and temporarily forcing authorities to issue the highest-level heavy rain emergency warning from early Sunday morning.

Drones were used to deliver food and daily necessities to an isolated mountain community in Himi City, Toyama Prefecture, on August 30 after torrential rain triggered a landslide that cut off road access, while volunteers continued flood recovery work in neighboring Ishikawa Prefecture.

Two typhoons east of Japan were moving northward on August 30, with Typhoon No. 23 (Banlan) overtaking Typhoon No. 22 (Artau), although neither storm is expected to have a direct impact on Japan.

A 9-minute, 13-second drone video filmed inside Aeon Mall Kumamoto two days after the deadly explosion has provided a detailed view of the destruction, showing collapsed ceilings, heavy dust and widespread damage that may have affected between one-third and nearly half of the shopping center.

Strong Typhoon No. 18 was moving northwest through the East China Sea on the night of August 26, gradually pulling away from Okinawa and the Amami Islands as lingering rain, strong winds and high waves were expected to ease. As of 9 p.m. on August 26, the typhoon was over waters north-northwest of Kume Island and moving northwest.

MEDIA CHANNELS
         

MORE Business NEWS

Toyota Motor plans to introduce passenger vehicles equipped with advanced automated driving technology from 2028, allowing drivers to travel with almost no manual operation, including taking their hands off the steering wheel on ordinary roads.

Consumer prices in central Tokyo rose 1.8% in August from a year earlier, with the pace of inflation accelerating for a third consecutive month as higher food prices continued to put upward pressure on household costs.

Tokyo stocks rose on August 28, with the Nikkei 225 closing at 66,405.56, up 273.58 points, or 0.41%, as information-technology, software, automaker and selected semiconductor-related shares gained after a U.S. technology rally, while investors remained cautious before Federal Reserve Chair Kevin Warsh’s Jackson Hole speech.

Japan's toy market continues to expand despite the country's declining number of children, reaching a record 1.1664 trillion yen in fiscal 2025 as manufacturers increasingly target adults and introduce products reflecting social issues ranging from sustainability to investment.

Tokyo stocks slipped on August 27, with the Nikkei 225 closing at 66,131.98, down 130.18 points, as early buying in artificial intelligence and semiconductor-related shares following Nvidia’s strong earnings forecast faded into profit-taking, while the broader TOPIX edged higher for a sixth straight session.

Seven-Eleven Japan and Yamato Transport announced on August 26 that they will introduce self-service shipping machines allowing customers to send parcels without lining up at a staffed checkout counter.

Tokyo stocks rose on August 26, with the Nikkei 225 closing at 66,262.16, up 405.73 points, or 0.62%, as investors bought back selected semiconductor and financial shares, although trading was thin ahead of Nvidia’s earnings and uncertainty remained over artificial intelligence valuations, the yen and Bank of Japan policy.

Tokyo stocks fell on August 25, with the Nikkei 225 closing at 64,980.53, down 0.8%, as investors sold semiconductor and electronics shares ahead of Nvidia’s earnings while a weak yen, elevated bond yields and renewed U.S. pressure on Iran kept risk appetite subdued.