Retailers Invest in Digital Innovation, Automation and In-Store Experiences
Retail in Japan in 2025 demonstrates notable resilience and growth, with total sales advancing by 2% to JPY119,696.9 billion—outpacing national GDP growth despite elevated inflation at 3% and subdued consumer confidence. This robust performance was driven by a surge in inbound tourism linked to global events and eased travel restrictions, together with strategic investments in digital innovation, automation, and experiential store formats. Compared to regional peers, Japan’s retail environment is attractive. This is due to its high share of consumer expenditure, strong network of organised operators, and the ability of leading companies to drive consolidation and specialisation while responding rapidly to labour shortages and the evolving demands of both domestic shoppers and international visitors. For retailers, success will require the prioritisation of omnichannel integration, leveraging private label for differentiation, and investing in technology and experiential concepts to capture value-focused and experience-driven consumers.
Delivery:
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
This report comes in PDF with additional info in Excel included.
Overview:
Understand the latest market trends and future growth opportunities for the Retail industry in Japan with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Convenience Stores
- Discounters
- Hypermarkets
- Supermarkets
- Traditional Grocery Retailers
- Apparel and Footwear Specialist Retailers
- Electronics and Appliance Specialist Retailers
- Health and Beauty Specialist Retailers
- Home and Garden Specialist Retailers
- Department Stores
- Variety Stores
- Warehouse Clubs
- Direct Selling
- Homeshopping
- Vending
If you're in the Retail industry in Japan, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Retail in Japan report includes:
- Analysis of key retail trends
- Detailed segmentation of offline and online retail sales
- Historic channel sizes (retail value sales, outlet counts, and selling space)
- Company and brand market shares (retail value sales and outlet counts)
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Retail in Japan?
- Which are the leading retailers in Retail in Japan?
- How are products distributed in Retail in Japan?
- How is the rise of e-commerce and the expansion of modern grocery retail impacting traditional retail?
- How significant are discounters and private label in Japan?
- To what extent are sales shifting towards digital channels?
- What is the long-term outlook for bricks-and-mortar?
- How is macroeconomic and political uncertainty affecting the retail industry?
- What types of retailers are seeing the fastest growth in digital sales?
- What is the future of retail?
Retail in Japan
Retailers Invest in Digital Innovation, Automation and In-Store Experiences
Key Data Insights
Retailers Invest in Digital Innovation, Automation and In-Store Experiences
Health and Beauty Specialists the Top Performer in 2025
Rakuten Leverages Private Label to Deepen Customer Engagement and Loyalty
Tourist Demand Key to Future Growth Prospects
Private Label and Slow Delivery Attracting Value-Driven Shoppers
Social Commerce Set to Shake up the Market
Aeon, Amazon and Rakuten Drive Consolidation through Scale and Innovation
Strategic Mergers Signal a New Era of Competition
Informal Retail
Opening Hours for Physical Retail
Seasonality
Hatsu Uri (“First Sales”) at New Year
Valentine’s Day
White Day
Mother’s Day
Father’s Day
Summer Bargains
Halloween
Black Friday and Cyber Monday
Christmas and Year-end Bargains
Convenience Retailers in Japan
Key Data Insights
Convenience Stores Remain Central to the Lives of Many Locals
Convenience Stores Remain Central to the Lives of Many Locals
Family Mart Attracts New Shoppers with Lifestyle-Driven Convenience Wear
7-Eleven Pilots Autonomous Robots to Support Quick Delivery
Convenience Stores Will Retain a Central Role in Japan
Retailers Can Strengthen Loyalty by Expanding Their Role in the Community
Familymart Leverages Private Label to Challenge 7-Eleven’S Stronghold
Lawson Acquires Save on and Launches a New and Innovative Store
Supermarkets in Japan
Key Data Insights
Supermarkets Focus on Delivering Convenience
Supermarkets Focus on Delivering Convenience
Private Label No Longer Just a Budget Choice
Private Label Innovation Responds to Hyper-Local Demand
Physical Stores Deepen Community Engagement with Service-Led Formats
Online Grocery Faces Persistent Barriers as Partnerships Emerge
Lopia Accelerates Expansion as Aeon Group Deepens Digital Engagement
Trial Holdings and Seiyu Combine Strengths for Urban Growth
Hypermarkets in Japan
Key Data Insights
Seven & Holdings Pivots to Convenience Stores as Shoppers Seek Specialisation
Seven & Holdings Pivots to Convenience Stores as Shoppers Seek Specialisation
Aeon Drives Innovation with Climate-Friendly Private Label Launches
Ito-Yokado and Onigo Deliver Speed and Freshness through Online Partnerships
Aeon Consolidates Scale as Rivals Retreat and Urban Demand Intensifies
Hypermarkets Must Focus on Exclusive Services and Digitalisation to Retain Relevance
Aeon Secures Dominance as Rivals Exit and Trial Gains Momentum
Small Local Grocers in Japan
Key Data Insights
Store Closures Accelerate as Urbanisation and Digital Shift Reduce Foot Traffic
Store Closures Accelerate as Urbanisation and Digital Shift Reduce Foot Traffic
Health Food and Ethnic Grocers Tap into Niche Demand but See Limited Gains
Local Identity and Experiential Retail Become Critical for Survival
Niche Grocers Target Wellness and Ethnic Demand as Traditional Stores Decline
Community-Led Initiatives and Tourist Engagement Drive Survival Strategies
General Merchandise Stores in Japan
Key Data Insights
Increased Focus on Value Boosts Sales through Variety Stores
Increased Focus on Value Boosts Sales through Variety Stores
Hankyu Fosters Family Loyalty through Experiential Retail Innovation
Don Quijote Disrupts with Affordable Private Label Launches
Variety Stores to Drive Growth as Department Stores Consolidate
Department Stores Enhance Experiences to Capture Affluent and Inbound Demand
Don Quijote Leverages Private Label and Tourism to Widen Lead
100 Yen Shop Provides a Lifeline for Cash-Strapped Consumers
Apparel and Footwear Specialists in Japan
Key Data Insights
Shimamura and Fast Retailing Shape Omnichannel Experiences as Value Declines
Shimamura and Fast Retailing Shape Omnichannel Experiences as Value Declines
Shimamura Park Boosts Digital Engagement through a Unified Brand Ecosystem
Uniqlo’S Experiential Events Drive Engagement among Families and Millennials
Familymart Expands Convenience Wear Line, Forcing Specialists to Adapt
Tourism-Driven Demand Fuels Focus on Japanese Authenticity
Personalised Loyalty and Experiential Retail Become Essential for Growth
Uniqlo Leverages Store Network and Collaborations to Accelerate Share Gains
Appliances and Electronics Specialists in Japan
Key Data Insights
Yamada Denki Leverages Private Label Innovation to Drive Growth
Yamada Denki Leverages Private Label Innovation to Drive Growth
Yodobashi Camera Accelerates Engagement through Tiktok Shop
Housing Demand Key to Growth, While Tourism Offers Opportunities
Yodobashi Camera Addresses Climate-Driven Demand with Cooling Innovation
Retailers Embrace Experiential Shopping to Capture Inbound and Local Demand
Yamada Denki Redefines Retail Experience to Defend Its Lead
Bic Camera Benefiting From Inbound Tourism
Home Products Specialists in Japan
Key Data Insights
Cainz Harnesses Private Label to Build Loyalty and Margins
Cainz Harnesses Private Label to Build Loyalty and Margins
Home Improvement and Gardening and Pet Shops Show Resilience
Ikea Transforms Retail with Immersive Sleepover Experiences
Nitori and Competitors Diversify into Appliances to Capture Household Spending
Retailers Adapt Product Lines in Response to Demographic Shifts
Pet Shops and Superstores Need to Evolve as Pressure From E-Commerce Grows
Nitori Expands into Appliances to Sustain Sales Lead
Cainz Accelerates Growth through Daito Acquisition
Health and Beauty Specialists in Japan
Key Data Insights
Matsumotokiyoshi Reinvents Private Label to Deepen Shopper Loyalty
Matsumotokiyoshi Reinvents Private Label to Deepen Shopper Loyalty
Nihon Chouzai Leverages Ai to Transform Pharmacy Operations and Patient Care
Inbound Tourism Key to the Growth of Beauty Specialists
Retailers Are Broadening Their Private Label Lines and Digital Services to Boost Loyalty
Welcia Merges with Tsuruha to Reshape Leadership
Visionary Holdings Acquisition Fuels Intermestic's Expansion Plans
Vending in Japan
Key Data Insights
Beverage Brands Raise Prices and Drive Revenue through Vending
Beverage Brands Raise Prices and Drive Revenue through Vending
Cold Drinks Providers Capture Growth as Hot Weather Drives Demand
New Technology Enables Operators to Boost Sales and Efficiency
Technology to Play a Central Role in the Future of Vending
Suntory and Mitsui Sumitomo Add Value through Partnerships
Coca-Cola and Suntory Maintain Their Stronghold
Direct Selling in Japan
Key Data Insights
Yakult Accelerates Digital Shift as Direct Selling Faces Decline
Yakult Accelerates Digital Shift as Direct Selling Faces Decline
Health and Beauty Direct Selling Leads Sales as Fashion Rebounds
Yakult Transforms Customer Experience with App-Driven Home Delivery
Amway Enhances Loyalty by Linking Payment Benefits to Digital Engagement
Health and Beauty Direct Selling to Sustain Leadership Despite Stagnation
Fashion Direct Selling Builds Momentum through Digital-First Strategies
Yakult Honsha Leverages Community Trust to Sustain Its Advantage
Retail E-Commerce in Japan
Key Data Insights
Marketplace E-Commerce Remains the Key Growth Driver
Marketplace E-Commerce Remains the Key Growth Driver
Social Shopification Fuels Retail Transformation
Line Yahoo and Tmall Unlock Cross-Border Sales as Growth Slows
Amazon and Rakuten Invest in Loyalty Programmes to Retain Shoppers
Social and Unified Commerce Reshaping Shopper Expectations
Amazon Strengthens Logistics and Loyalty to Outpace Rivals
Temu Is Making Inroads, but Established E-Commerce Titans Hold Steady
Country Reports Disclaimer
The following categories and subcategories are included:
Retail
-
-
-
- Convenience Stores
- Forecourt Retailers
- Supermarkets
- Hypermarkets
- Discounters
- Warehouse Clubs
- Food/Drink/Tobacco Specialists
- Small Local Grocers
-
-
-
- Department Stores
- Variety Stores
- Apparel and Footwear Specialists
- Appliances and Electronics Specialists
-
- Home Improvement and Gardening Stores
- Homewares and Home Furnishing Stores
- Pet Shops and Superstores
-
- Beauty Specialists
- Pharmacies
- Optical Goods Stores
- Health and Personal Care Stores
-
- Bags and Luggage Specialists
- Jewellery and Watch Specialists
- Sports Goods Stores
- Traditional Toys and Games Stores
- Other Non-Grocery Retailers
-
-
- Fashion Vending
- Health and Beauty Vending
- Appliances and Electronics Vending
-
- Alcoholic Drinks Vending
- Hot Drinks Vending
- Soft Drinks Vending
- Tobacco Products Vending
- Foods Vending
- Home Products Vending
- Other Products Vending
-
-
- Apparel and Footwear Direct Selling
- Personal Accessories Direct Selling
- Eyewear Direct Selling
-
- Beauty and Personal Care Direct Selling
- Consumer Health Direct Selling
- Tissue and Hygiene Direct Selling
- Appliances and Electronics Direct Selling
- Drinks and Tobacco Direct Selling
- Foods Direct Selling
- Home Products Direct Selling
- Other Products Direct Selling
-
-
-
-
-
- Apparel and Footwear E-Commerce
- Personal Accessories E-Commerce
- Eyewear E-Commerce
-
- Beauty and Personal Care E-Commerce
- Consumer Health E-Commerce
- Tissue and Hygiene E-Commerce
-
- Consumer Appliances E-Commerce
- Consumer Electronics E-Commerce
- Toys and Games E-Commerce
- Drinks and Tobacco E-Commerce
- Foods E-Commerce
-
- Home Care E-Commerce
- Home and Garden E-Commerce
- Pet Care E-Commerce
- Other Products E-Commerce
-
-
-
- First-Party (1P) Marketplace E-Commerce
- Third-Party (3P) Marketplace E-Commerce
- Grocery E-Commerce
- General Merchandiser E-Commerce
- Apparel and Footwear Specialist E-Commerce
- Appliances and Electronics Specialist E-Commerce
- Home Products Specialist E-Commerce
- Health and Beauty Specialist E-Commerce
- Leisure and Personal Goods Specialist E-Commerce
- Other E-Commerce Retailers
-
-
Retail
Retail is the sale of new and used goods to consumers from a business for personal or household consumption from retail outlets, kiosks, market stalls, vending, direct selling and e-commerce. Retail is the aggregation of Retail Offline and Retail E-Commerce. Excludes specialist retailers of motor vehicles, motorcycles, vehicle parts. Also excludes fuel sales, foodservice sales, rental transactions, wholesale sales (e.g. Cash and Carry), and sales through cannabis dispensaries in markets where cannabis is sold legally. Sales value excluding or including VAT/Sales Tax. Retail also excludes the informal retail sector. Informal retailing is retail trade which is not declared to the tax authorities. Informal retailing encompasses (a) sales generated by unregistered and unlicensed retailers, i.e. retailers operating illegally, and (b) any proportion of sales generated by a registered and licensed retailer that is not declared to the tax authorities. Unregistered and unlicensed retailers operate predominantly (although not exclusively) as street hawkers or operate open market stalls, as these channels are harder for the authorities to monitor than permanent outlets. Activities in the illegal market, which is usually understood to refer to trade in illegal, counterfeit or stolen merchandise, are included within our definition of informal retailing. Activities in the “grey market”, which is usually understood to refer to trade in legal merchandise that is sold through unauthorized channels – for example cigarettes bought legally in another country, legally imported, but sold at lower prices than in authorized channels – will be included as informal retailing if no tax is paid on sale by the retailer. However if the retailer pays tax – for example on cigarettes bought legally in another country but sold at a lower price than standard – the sale is included within formal retail.
See all of our definitionsWhy buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Retail research and analysis database.
NEW REPORT GUARANTEE
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!