Key facts
- Consumers are shifting to discount supermarkets for bulk purchases due to rising prices.
- Convenience store customer numbers fell 3.8% in September from a year earlier.
- Seiyu saw a 6.9% increase in customer numbers at existing stores in September.
- Fast Retailing reconsidered a planned price hike for a color socks line.
Japanese consumers are increasingly seeking value for money as inflation outpaces wage growth, leading to a shift away from convenience stores towards discount supermarkets. This change in shopping habits is a concern for the broader economy, which is heavily reliant on private consumption. Convenience stores have seen customer numbers fall for 15 consecutive months, with a significant drop in September. Retailers like Seven & i and FamilyMart are responding by introducing lower-priced own-brand ranges and promotional discounts. Meanwhile, discount chains like Seiyu, now owned by Trial Holdings, are experiencing robust customer traffic growth by offering competitive prices on items such as pork cutlet rice bowls and egg sandwiches. The trend is further exacerbated by rising labor and utility costs, prompting convenience store operators to explore non-food revenue streams like crane games and capsule-toy machines. Even apparel retailer Fast Retailing has reconsidered planned price hikes on essential items.