Retail in 2024: The big picture
Retail in Japan maintained slow and stable current value growth in 2024, with increases in both online and offline sales. Nevertheless, this is not to say the industry was without its challenges.
Changes in the competitive environment in retail
In 2024, significant corporate developments in the retail industry unfolded in Japan, particularly involving major players such as Lawson, 7-Eleven, and Amazon. Lawson, previously a subsidiary of Mitsubishi Corporation, underwent a major transformation.
Japan’s retail industry embraces digital solutions to combat labour shortages
The retail industry in Japan is experiencing significant digital transformation, with various innovations aimed at improving efficiency and addressing labour shortages. Self-checkout systems, unmanned stores, cashless transactions, and click-and-collect services continue to gain traction as retailers seek to streamline their operations.
What next for retail?
Retail in Japan is expected to see slow and stable current value growth throughout the forecast period, with increasing sales both online and offline. However, amidst rising inflation and limited wage increases, the competition between retail channels in Japan is intensifying, with consumers increasingly gravitating towards cheaper options.
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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
Retail in 2024: The big picture
Changes in the competitive environment in retail
Japan’s retail industry embraces digital solutions to combat labour shortages
What next for retail?
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
DISCLAIMER
Convenience Retailers in Japan
KEY DATA FINDINGS
Growing demand for convenience as people return to work
Top three players in convenience stores each show a different strategy
Price-sensitive consumers seek value for money, and will not accept simplification or shrinkflation
Convenience stores as essential social infrastructure
Diversifying revenue streams important to increase profitability
Adapting to growing inbound demand
Supermarkets in Japan
KEY DATA FINDINGS
The number of stores and retail sales show growth in supermarkets in 2024
Ongoing competition for customers with drugstores
Expansion of online and delivery services proves effective
Opportunities in urban areas for large-scale supermarkets
Cost increases due to labour hour restrictions in the logistics industry
Self-checkout and cashless options to address labour shortages
Hypermarkets in Japan
KEY DATA FINDINGS
Shift to speciality stores leads to downward value trend for hypermarkets
AEON Group continues to lead hypermarkets
Restructuring for improved management efficiency
Improving apparel profits is key to future growth
Hypermarkets accelerate digital strategies
Accelerating efforts towards sustainability
Small Local Grocers in Japan
KEY DATA FINDINGS
Decline in store numbers and value sales continues
Revitalising and rebuilding shotengai (local shopping streets) is crucial
Demand for products from specialists helps limit decline
Urban and rural areas will remain unequal in shopping access
Enhancing appeal to inbound tourists to drive sales
New concepts and niches anticipated in small local grocers
General Merchandise Stores in Japan
KEY DATA FINDINGS
Department stores thrives amidst yen depreciation and rising inbound demand
Trend-driven beauty strategy beyond price constraints
Variety stores differentiate through strengthened private label lines
Department stores to seize opportunities from growing inbound demand with emphasis on omnichannel strategy
Store-centric variety stores rely on consumer interaction for a competitive edge
@cosme’s unique strategy in beauty retail
Apparel and Footwear Specialists in Japan
KEY DATA FINDINGS
Store growth stalls as shift to online accelerates
Fast Retailing continues to grow, with a wide store presence
Competitive landscape intensifies within a fragmented channel; success in urban areas key to further growth
Demand from inbound tourists remains crucial for the future
Online shopping becomes more convenient, highlighting the need to consider offline value
Loyalty strategy key for cross-channel users, who shop both offline and online
Appliances and Electronics Specialists in Japan
KEY DATA FINDINGS
The wide presence of appliances and electronics specialists
Two types of appliances and electronics specialists in Japan
Competition in Ikebukuro
Shift to retail e-commerce likely to continue
The importance of offline retail set to endure
Strategic moves by Yamada Holdings
Home Products Specialists in Japan
KEY DATA FINDINGS
Growth driven by increased awareness of need for disaster preparedness
Nitori drives product range expansion with availability of appliances
Focusing on private label is essential for differentiation
Home product specialists transform into gathering spaces through events and experiences
Retail e-commerce and other channels pose a threat to home products specialists for sales of pet products
Addressing consumers concentrated in urban areas
Health and Beauty Specialists in Japan
KEY DATA FINDINGS
Strong sales growth driven by store reopening as retail channels blur
Private label lines from health and beauty specialists embrace high added value
MatsukiyoCocokara & Co thrives thanks to recovery of inbound travel
Intensifying competition in the consolidating health and beauty specialists landscape
Evolving digital services in pharmacy dispensing
Femtech and femcare likely to be trends seen in health and beauty specialists
Vending in Japan
KEY DATA FINDINGS
Positive performance despite price increases
Coca-Cola leads with a strong loyalty programme and sustainable actions
Demand for vending rises to prevent heatstroke amidst extreme temperatures
Creating new value through experience offerings
The role of vending machines as social infrastructure
Partnerships formed to address labour shortages and leverage AI solutions
Direct Selling in Japan
KEY DATA FINDINGS
Headwinds in direct selling and their impact on sales of supplements
Regulatory guidance to Amway, and efforts to enhance transparency
Yakult’s initiatives to strengthen community welfare programmes
Small players expected to be eliminated in direct selling
Addressing challenges of strengthened government regulations
Differentiation strategies through payment services and membership benefits
Retail E-Commerce in Japan
KEY DATA FINDINGS
Growth slows with return to physical stores, yet shopping events drive sales
Amazon Japan leads retail e-commerce
TAO launches as Temu and other budget e-commerce platforms thrive
Diverse payment methods create seamless transactions
Logistics challenges persist – companies are taking action
Amazon and Docomo partnership intensifies ecosystem competition
The following categories and subcategories are included:
Retail
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- Convenience Stores
- Forecourt Retailers
- Supermarkets
- Hypermarkets
- Discounters
- Warehouse Clubs
- Food/Drink/Tobacco Specialists
- Small Local Grocers
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- Department Stores
- Variety Stores
- Apparel and Footwear Specialists
- Appliances and Electronics Specialists
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- Home Improvement and Gardening Stores
- Homewares and Home Furnishing Stores
- Pet Shops and Superstores
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- Beauty Specialists
- Pharmacies
- Optical Goods Stores
- Health and Personal Care Stores
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- Bags and Luggage Specialists
- Jewellery and Watch Specialists
- Sports Goods Stores
- Traditional Toys and Games Stores
- Other Non-Grocery Retailers
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- Fashion Vending
- Health and Beauty Vending
- Appliances and Electronics Vending
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- Alcoholic Drinks Vending
- Hot Drinks Vending
- Soft Drinks Vending
- Tobacco Products Vending
- Foods Vending
- Home Products Vending
- Other Products Vending
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- Apparel and Footwear Direct Selling
- Personal Accessories Direct Selling
- Eyewear Direct Selling
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- 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
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- Apparel and Footwear E-Commerce
- Personal Accessories E-Commerce
- Eyewear E-Commerce
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- Beauty and Personal Care E-Commerce
- Consumer Health E-Commerce
- Tissue and Hygiene E-Commerce
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- Consumer Appliances E-Commerce
- Consumer Electronics E-Commerce
- Toys and Games E-Commerce
- Drinks and Tobacco E-Commerce
- Foods E-Commerce
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- Home Care E-Commerce
- Home and Garden E-Commerce
- Pet Care E-Commerce
- Other Products E-Commerce
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- 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
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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, and wholesale sales (e.g. Cash and Carry). 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.
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This report originates from Passport, our Retail research and analysis database.
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