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Grocery Retailers in Japan

Japan grocery retailers market: 7-Eleven the key industry player with 10% value share during 2012

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2014-02-18 11:20:03 - Grocery Retailers in Japan - a new market research report on

7-Eleven Japan Co Ltd led Japan grocery retailers market with a value share of 10% in 2012. 7-Eleven Japan Co Ltd holds a 32% value share in convenience stores, which account for around one third of aggregate grocery retailers´ sales. 7-Eleven Japan Co Ltd has one of the most well-known private label brands, Seven Premium. The company further expanded its private label brand by introducing Seven Gold in 2012. The second biggest company in convenience stores is Lawson Inc with a value share of 20% in 2012.

Lawson Inc also carries the uchi café series under its private label and premium roll cake won a gold medal at Monde Selection. Uchi café is a range of Lawson´s private label products



that targets the home café trend in Japan. Both 7-Eleven Japan Co Ltd and Lawson Inc emphasised the premium image of their dessert products and they often outperformed national brands´ products. Premium desserts at convenience stores were a major driving force behind increased traffic to the stores in 2012 and helped underpin positive sales performance for the retail channel as a whole.

Value sales of grocery retailers slightly increased by 0.4% in 2012. Although convenience stores recorded positive growth of 2.5% in 2012, a sharp decline by traditional grocery retailers such as food/drink/tobacco specialists and independent small grocers negatively impacted overall category growth. Supermarkets, on the other hand, grew their sales by 2% in 2012. Since Aeon Marche Co Ltd closed its last outlet in 2011, no retailer has launched a hypermarket in Japan. With slow economic recovery, consumers remain price sensitive especially at supermarkets and price discounting continues to be used by retailers to attract consumers´ attention.

Value sales of grocery retailers are anticipated to post a CAGR of under 1% over the forecast period. After the Tohoku earthquake, demand for non-perishable food increased, enabling positive growth for grocery retailers in 2011. Supermarkets continued to secure positive growth in 2012 by organising promotions and services for elderly consumers. After the earthquake, food safety became one of the major concerns for consumers and major players such as AEON Group voluntarily checked the level of residual caesium in food items. Such dedicated services by supermarkets were highly valued by consumers and as a result, the supermarkets category is anticipated to post a CAGR of just over 1% over the forecast period.

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