OSAKA - Major supermarket OK, known for its stronghold in the Tokyo metropolitan area, has opened its first Kansai store in Higashi-Osaka City. With supermarkets from other regions steadily entering the Kansai market, local chains are actively responding with their own strategies.
As competition heats up, showcasing unique features through products, pricing, and services has become a key survival tactic for supermarkets in the region.
At the opening of OK’s first Kansai store, customers lined up early, eager to explore its offerings. Visitors praised the affordability and quality, noting the significant savings on meats, seafood, and fresh produce. OK’s pricing strategy includes setting prices even one yen lower than competitors, achieved through innovative cost-cutting measures like reduced refrigeration use and bulk purchasing agreements with suppliers.
OK also tailors its offerings to local tastes, incorporating Kansai-specific flavors into prepared dishes such as sukiyaki and okonomiyaki. While OK continues to expand, its leadership envisions becoming an integral part of the Kansai community, shedding the image of an outsider.
Meanwhile, Kansai-based supermarket chains are leveraging their own strengths. H2 Retailing, which owns Kansai Supermarket, Hankyu Oasis, and Izumiya, has emphasized collaboration and cost efficiency through group-wide initiatives, including joint sales campaigns and private-label products. This approach has contributed to record-high revenues and profits for the group in recent years.
Other competitors, like Life and Trial, are also innovating to maintain their edge. Life recently revamped a store near OK’s new location, emphasizing ready-to-eat frozen meals and expanding space for processed foods to cater to busy families. Trial, a Fukuoka-based chain, employs cutting-edge technology such as self-checkout carts and facial recognition payment systems, enhancing convenience while reducing operational costs.
Additionally, meat-focused retailer Nikuno Hanamasa has expanded into Kansai with a wider range of portion sizes and unique private-label offerings, including spicy tantanmen and green curry. These efforts aim to attract a broad customer base while emphasizing their brand identity.
The entry of OK into Kansai’s competitive supermarket landscape marks a turning point, forcing local players to enhance their strategies. As price wars give way to battles over service, innovation, and local appeal, the stakes have never been higher for survival in this fiercely contested market.
Source: YOMIURI
