October convenience store sales down for 5th month

Saturday 21st November, 07:04 AM JST

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13 Comments

rajakumar at 06:41 AM JST - 21st November

Japan convenience 5.5 percent fall, is sustainable for improvement in 2010s.
Beelzebub at 10:06 AM JST - 21st November

The exact same item that goes for ¥95 in a 7-11 around here sells for ¥68 in an Aeon mini-supermarket outlet. The local drug stores also undersell kombini on food and snack items, with Soy Joy going for ¥20 cheaper. The reason the kombini are so overpriced is that they have to pay out outrageous commissions to the franchising company. Anyway with deflation and recession, consumers are no longer willing to pay a premium for "convenience."
neganip at 10:16 AM JST - 21st November

These models are just waypoints to a huge deflationary cycle thats going to finally put Japan on the global map. Get ready all ye settai lovers for a return to your merchant routes.
cactusJack at 11:46 AM JST - 21st November

There are just too many of these "convenient" stores. Often times there are two facing each other on opposite sides of the street. Who needs that?
Weasel at 12:35 PM JST - 21st November

Is this supposed to be as significant as a Nordstrom's department store opening event?
some14some at 12:58 PM JST - 21st November

Convenience store sales are unlikely to improve because people are used to 'inconvenience' and looking for cheaper items due to financial hardships.
cow76 at 02:44 PM JST - 21st November

I used to go to 7-11 all the time but they put the price of their curry pan up to 120 yen from 105. Seemed greedy in a time of zero inflation so I stopped going. It's very pricy compared to the alternatives.
Sarge at 03:35 PM JST - 21st November

The recession continues!

"I used to go to 7-11 all the time but they put the price of their curry pan up to 120 yen"

You've been in Japan too long.
TokyoGas at 04:27 PM JST - 21st November

Beelzebub makes a good point and I have asked people as to why...

Tea drinks go for ¥147 at 7-11 and other convenience stores, but at the supermarket/¥100 stores/mini-supermarkets the price is from ¥95-¥105 for the exact same product. That is approx 30% difference in price which will add up over time.
Disillusioned at 04:45 PM JST - 21st November

Obviously, this is a result of many new discount supermarkets and Y100 shops popping up everywhere. There is a positive side to this though, my local combini has been dishing out free oden to increase business and I have been pigging out on it nearly every day. It's a shame it tastes like poop though.
TumbleDry at 01:42 AM JST - 22nd November

cactusJack: it's called competition.

TokyoGas: Let the market speak.
mousepotato464 at 01:12 PM JST - 22nd November

I think this is positive news. I hope that this means that people are choosing more nutritious and cheaper food at the grocery store.
5SpeedRacer5 at 01:48 PM JST - 22nd November

They have put themselves in a very bad cycle. First they overbuilt and put all of the competitive pressure on franchisees. All of that overbuilding reduced the same store volume of business. Franchisees are beaten down because they have reduced labor to the bone. They have hoped that other outlets would close through some kind of consolidation. Now, we have reached the last stage: raising prices. The convenience stores that TRULY have convenient locations will earn higher profits, but most will fail as people seek alternatives.

Perfect competition is zero profit. The more perfect, the less profit.

People living in big cities will get gouged severely. For most people in Japan, small groceries and mom and pops will look better and better. I have noticed higher prices at conbini. I stop buying.