TOKYO, Dec 29 (News On Japan) - As prices continue to rise across Japan, a new AI-powered system designed to automatically calculate the optimal timing and level of discounts is beginning to reshape retail pricing strategies.
The system was developed by Harmonia, a startup led by CEO Daiki Matsumura, who previously built dynamic pricing technology for hotels and transportation services. The tool is aimed at helping food retailers, whose profit margins often hover around just 1.5 percent, improve earnings while reducing food waste through more precise price adjustments.
In October 2025, the technology drew attention when Toshiba Tec, a major point-of-sale system provider, acquired the business. The move raised questions about why Matsumura chose to sell rather than take the company public. The answer, he says, lies in scale and impact. By joining forces with a major industry player, the technology could be rolled out faster and influence pricing practices across the broader retail sector.
The system analyzes large volumes of data to determine the most appropriate price at any given moment, factoring in demand, time of day, and inventory conditions. The goal is to set prices that appeal to customers while preserving profitability for stores. Matsumura describes it as a way to bring rationality and transparency to pricing decisions that have traditionally relied on intuition and experience.
The technology has already been adopted in sectors such as hotels and highway bus services. One bus operator reported a several-percent increase in revenue after introducing the system, demonstrating its potential beyond food retail.
During a walk through a shopping arcade in Tokyo’s Ginza area, Matsumura pointed out how pricing strategies are already subtly shaping consumer behavior. At one food shop, takeout items were deliberately priced lower than dine-in options, encouraging customers to try the products first. Spring rolls that cost 250 yen when eaten inside were sold for 150 yen to take away, while other items were similarly discounted to attract new customers.
Such pricing decisions, he explained, are not arbitrary. They are designed to bring customers through the door, build familiarity, and eventually lead to higher-value purchases. The AI system aims to formalize this logic, using data rather than intuition to determine how prices should shift throughout the day.
Matsumura believes the shift from deflation to inflation has made consumers far more sensitive to price changes, making accurate pricing more important than ever. By automating these decisions, he hopes to help retailers survive in an increasingly competitive environment while reducing waste and improving efficiency across the food distribution chain.
As AI-driven pricing gains traction, the initiative could mark a turning point in how Japan’s retail industry approaches one of its most fundamental challenges: setting the right price at the right time.
Source: テレ東BIZ
