30% of Japan supermarkets in red

TOKYO, Oct 18 (News On Japan) - Due to the impact of surging prices, 30 percent of supermarkets in Japan are operating at a loss.

According to a private research firm, "Teikoku Databank", of approximately 1,100 companies nationwide, 31.3% reported losses for the fiscal year of 2022.

Combining this with companies that reported 'reduced profits' from the previous year, about 70% of companies have seen a decline in performance.

While prices for products are gradually being adjusted in light of soaring procurement costs and utilities, smaller supermarkets are bearing the burden as they try to compete with major retailers offering sales and discounts.

By region, Tottori Prefecture had the highest percentage of supermarkets operating at a loss, followed by Tokushima, Shiga, Gifu, and other primarily regional supermarkets. Population decline is a major issue facing these regions.

Supermarkets that performed well have been introducing measures such as self-checkout systems to reduce the need for staff and cut costs.