Variety Stores in Japan

PROSPECTS

Variety stores appeals to price-sensitive consumers and encourages frequent visits

Variety stores such as 100 Yen Shop and Don Quijote continued to benefit from popularity amongst price-sensitive consumers at the end of the review period. In addition, such outlets often have strong product development strategies with a rapid turnover of stock that encourages consumers to stop by frequently and explore the offer.

Popular amongst inbound tourists

With a distinctive product line-up and low prices, the variety stores channel is popular amongst inbound tourists looking for items for personal use and souvenirs. Consequently, the channel is well-placed to benefit from the rise in inbound tourism in Japan, as the government pursues ambitious plans to increase inbound tourist numbers to 60 million by 2030.

MUJI opens first domestic hotel

MUJI opened a new flagship store and hotel in Ginza, a popular shopping area for inbound tourists visiting Tokyo, in April 2019. This was the brand’s third hotel globally, following the opening of sites in China, in Shenzhen in January 2018 and Beijing in June 2018, and contributes to efforts to raise brand-awareness ahead of the 2020 Tokyo Olympic Games.

COMPETITIVE LANDSCAPE

Don Quijote continues to thrive

The Don Quijote brand remained the clear leader in variety stores at the end of the review period, as it continued to thrive in the Japanese market. The brand’s offer spans a wide variety of products, including consumer electronics, appliances, daily goods, fashion and groceries, and each category has its own private label brand.

MUJI expands product range and opens hotel

MUJI continued to perform well in 2019, as it benefited from its efforts to develop new products for consumers’ daily use, ranging across apparel, stationery and groceries. As the Nakashoku culture develops, MUJI is working to expand its grocery line-up with an emphasis on frozen meals and chilled desserts.

100 yen shops performing well

The 100 Yen Shop, Seria 100 Yen Shop and Can Do 100 Yen Shop brands continued to show healthy growth at the end of the review period supported by store network expansion. These 100 yen shops benefit from appealing both to price-sensitive domestic consumers and inbound tourists, as well as the fact that they are subject to limited competition from e-commerce players.

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