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
