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Supermarkets faces an unpromising outlook, as it is confronted with increasing competition from rival retailing formats, including convenience stores, drugstores and e-commerce. While its low prices and wide range of fresh produce helped supermarkets to maintain its position as the largest retailing channel by value in 2019, it is increasingly losing out to formats that are more compatible with the evolving lifestyles and preferences of modern consumers.
Japan’s severe labour shortage continues to present considerable challenges to retailers. As in the convenience stores channel, supermarket brands are seeking to increase the efficiency of their operations through the introduction of new equipment, such as points-of-sale allowing for cashless payment, sliding store shelves and digital apps.
In order to target consumer demand for shopping options that are embedded in their fast-paced everyday lives and to counter competition from rival formats such as convenience stores and drugstores, some supermarkets players are opening so-called mini-supermarkets. These stores are usually positioned between conventional supermarkets and convenience stores, and seen as urban-style supermarkets.
AEON Group retained the lead in supermarkets in 2019. The company’s portfolio includes a variety of supermarkets, from large to small, urban to local, and targeting a wide range of consumers.
In February 2019, Don Quijote Holdings changed its name to Pan Pacific International Holdings (PPIH). A month earlier the company expanded its presence in the supermarkets channel through the acquisition of 100% of Uny Group Holdings.
Forecast KK, a subsidiary of Seven & I Holdings, owner of leading convenience stores brand, 7-Eleven, is working to develop Comfort Market as a new style of supermarket. The store is designed to test new systems, such as full self-service check-outs, sliding store shelves, special apps and lockers to pick up orders, with the aim of enhancing both productivity and customer experience.
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This industry report originates from Passport, our Retailing market research database.
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.