News On Japan

Small Supermarkets Surge as Shoppers Seek Lower Prices

TOKYO - Small supermarkets offering lower prices than convenience stores and closer access than full-size supermarkets are expanding rapidly across the Tokyo metropolitan area, as retailers race to meet demand from older consumers, single-person households and shoppers under pressure from rising prices.

The segment is led by My Basket, the Aeon Group chain that has built a dominant presence in Tokyo, Kanagawa, Chiba and Saitama. The stores carry fresh foods, frozen products and private-brand items, offering a compact supermarket format in residential neighborhoods and near stations. Customers say the stores are useful because they are close to home and feel cheaper than convenience stores.

The chain’s biggest advantage is its dense store network. Around Kamata Station in Tokyo’s Ota Ward, one My Basket outlet stands near the station, while another is about three minutes away on foot, roughly 300 meters from the first. There are four stores in the immediate area, and 85 across Ota Ward. Across Tokyo and the three surrounding prefectures, the chain operates 1,356 stores. Sales last year reached about 300 billion yen, continuing a steady growth trend.

A supermarket industry specialist said urban areas are seeing a growing number of older residents and single-person households, a trend expected to continue. Smaller stores located within walking distance are designed to meet those needs, giving residents a place to buy daily goods without traveling to a large supermarket.

The appeal of small-format stores is also drawing other retailers into the market. Trial, a discount store operator with roots in Kyushu and a nationwide network, is expanding its small supermarket format, Trial Go. The stores operate 24 hours a day and use information technology to cut labor costs, including self-checkout systems that allow payment through facial recognition. AI cameras also decide when to discount products based on expiration dates and sales trends, helping households save money.

Beisia, which operates supermarkets mainly in the northern Kanto region, is also developing small stores. At a location in Isesaki, Gunma Prefecture, products are sold individually to allow customers to buy only what they need. Bananas are priced at 42 yen each, eggs at 63 yen each, and natto at 139 yen per pack. Customers said the format is convenient for two-person households and people living alone because it reduces food waste and avoids the need to buy large quantities.

Beisia says the strategy reflects changes in household eating habits. Even within one family, each person may eat different foods, and the company wants each individual meal to feel enjoyable and valuable. The stores also respond to diversifying food preferences, with displays designed around lifestyle situations. Coffee, for example, is arranged so customers can choose products by daily use, while decaffeinated options are presented with illustrations aimed at making them easy for parents raising children to understand.

The company is now aiming to open stores in Tokyo’s 23 wards, where competition with existing supermarkets is intense. Beisia says it wants to emphasize its store concept more clearly as it expands into the capital.

The convenience store industry is also moving into the small-supermarket space. Lawson opened the third outlet of its L Mini Mart format last month, offering rows of fresh foods and a broader selection of tofu and other daily items than a typical convenience store. The stores emphasize fresh produce, meat and other perishable goods, with a lineup that goes well beyond ordinary convenience store offerings.

Price is another selling point. Like a supermarket, L Mini Mart offers daily specials, including a 10 percent discount on cut salads on the day covered. At the same time, the stores do not provide standard convenience store services such as utility bill payment or parcel delivery acceptance. By cutting services that require extra handling, Lawson aims to keep operations simple and prices lower.

Retail experts say the spread of small supermarkets gives shoppers more ways to divide their purchases. Consumers can visit large stores by car on weekends for bulk shopping, then use nearby small stores for quick weekday purchases. The format also increases product choice, making daily shopping more flexible at a time when households are trying to manage higher living costs.

One industry observer said the next key battleground may be bento meals. Small stores already carry fresh foods according to their scale, but if they can use remaining fresh ingredients to create original bento offerings, customers may begin choosing stores based on the variety of prepared meals available.

Source: YOMIURI

News On Japan
POPULAR NEWS

Two typhoons moving across the Pacific southeast of Japan are expected to remain well away from the Japanese mainland, but powerful swells could bring rough seas to a wide stretch of the country's Pacific coastline throughout the three-day holiday weekend, according to forecasts updated at 3 a.m. on October 10.

A series of cyberattacks has disrupted business operations and exposed millions of customer records across Japan, with a ransomware attack on a cloud service provider affecting 495 companies and local governments nationwide, while convenience store operator Lawson has disclosed a separate breach involving more than 2.15 million personal information records.

Japan's first 360-degree projection mapping show will open at the Osaka City Museum of Fine Arts on October 10, transforming the historic building into an immersive world of light, music, and seasonal imagery, with organizers hoping the attraction will also help stimulate the city's nighttime economy.

Tokyo University of Science professor emeritus Kenzo Soai has been awarded this year's Nobel Prize in Chemistry together with French chemist Henri B. Kagan for discoveries that transformed scientists' understanding of how chemical reactions can favor one of two mirror-image forms of a molecule.

The US military suspended activities by all forces stationed in Okinawa for 48 hours from noon on October 7, an unusual measure following the arrest of a US Marine in connection with a robbery and murder case that has renewed scrutiny of crimes involving American service members.

MEDIA CHANNELS
         

MORE Business NEWS

Tokyo stocks fell sharply on June 26 as investors locked in profits from Japan’s record-setting AI-driven rally, with SoftBank Group and chip-related shares leading a broad retreat after reports that OpenAI may delay its initial public offering.

Japan recorded a current account surplus of 4.062 trillion yen in August, an increase of 12% from a year earlier, driven primarily by a sharp rise in income from overseas investments, even as higher crude oil prices pushed the country's trade balance into deficit.

Household spending in Japan fell 3.1% in August from a year earlier, marking the ninth consecutive month of decline as rising food prices continued to weigh on consumer budgets, according to the latest household expenditure survey released by the Ministry of Internal Affairs and Communications on October 9.

Tokyo stocks ended nearly unchanged on August 12, with the Nikkei 225 at 66,988.82, as gains in energy and financial shares offset weakness in electronics and pharmaceuticals while investors weighed higher crude oil prices, a weaker yen and growing expectations for another Bank of Japan rate increase.

Japan is entering a more difficult phase in its cybersecurity challenge, as a succession of major data breaches and ransomware attacks exposes weaknesses not only in corporate IT systems but also in supplier networks, governance structures and operational resilience.

Japan's four largest beer makers were subjected to simultaneous compulsory searches on October 7 over suspicions they coordinated wholesale prices for beer and other alcoholic beverages, in a rare cartel investigation that could lead to criminal charges.

Tokyo stocks fell on October 7, with the Nikkei 225 closing at 70,036, down 648 points, as investors took profits in semiconductor and artificial intelligence-related shares after the index’s rapid climb above 70,000 earlier in the week.

Japan's prolonged period of rising prices is continuing to squeeze households and businesses, driven by the weak yen, higher raw material costs and rising wages, forcing consumers to change how they shop and cook while companies search for ways to contain costs without losing customers.