Browse > Home / Business, Japan, Retail, Supermarkets / Japan supermarket sales down 1.7% in January, falling for 25th straight month

Japan supermarket sales down 1.7% in January, falling for 25th straight month

February 23, 2008
By Ken Worsley


Japan Supermarket Sales 2008During the brief history of this website, we have yet been able to report a rise in Japan’s supermarket sales. At some point we are sure it will come along, but it did not happen in January, according to data released yesterday by the Japan Chain Stores Association.

The figures show a 1.7% decline compared to the January 2007. Not only have sales now fallen for 25 straight months, but they have fallen in 46 of the past 47 months. The JCSA data is based on sales at 8,653 shops owned by 78 companies that have been in operation for at least one year.

The truly frightening figure is that when sales at newly opened stores are included, they fell by a stunning 5.6 percent. Usually the inclusion of these stores makes the numbers look a little bit better. In December, sales had been down 1.5% including such shops, and 1.8% when they were filtered out.

Here’s a breakdown by category for January sales:

  • Food: -0.3%, 59.4% of total revenue
  • Household Products: -3.6%, 20.6% of total revenue
  • Clothing: -4.2%, 13.8% of total revenue
  • Miscellaneous Items: -1.4%, 5.9% of total revenue
  • Services: -11.3%, 0.3% of total revenue

Food sales had risen slightly in December, while all other categories were down.

We also see some interesting figures in terms of employment. In January, There were a total of 441,651 employees on payroll at the nation’s supermarkets, down from 467,866 in December. This is a 5.6% decline in workforce. The number of full-time workers fell from 134,335 in December to 128,737 in January, while the number of part-timers fell from 333,531 in December to 312,914 last month.

The JCSA points out that the scandal over frozen Chinese gyoza broke in late January, and that according to the Ministry of Heath, Labour and Welfare that the average monthly wage had fallen to 330,212 yen in 2007.

We have not yet seen household spending data for January in order to compare it to supermarket spending, though since those numbers are due out within the next week, it will be interesting to see how households spent on food in January.

Filed Under Business, Japan, Retail, Supermarkets 

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Comments

12 Responses to “Japan supermarket sales down 1.7% in January, falling for 25th straight month”

  1. Vimy on February 24th, 2008 8:33 pm

    Is this people being tight with their wallets or is it something else? Are they shopping at places other than supermarkets, eating out more often, or are they simply making do with less?

  2. David on February 25th, 2008 1:31 am

    With the poor service and high prices of the Supermarkets in my area (Denenchofu/Okusawa/Jiyugaoka) I am not at all surprised that sales are down. Most have next to baker’s hours, have a poor selection of food which never, ever, seems to change, and have few advantages over a 7-11 or other convenience store. Other items I can get with much better service and similar or even lower prices at small specialized shops.

    Take a look at your nearest Precce which is owned by Tokyu and charges much more for the same items. The difference? Produce is fresher. The cashiers bow and thank you for shopping again. Then they wrap every single item (well, it seems) in plastic or even foam so that you have an extra ton of garbage every month. All this justifies the absurd prices they charge, I suppose.

    What’s the point of walking an extra 10 minutes when a convenience store is 5 minutes away?

  3. BillyBuck on February 25th, 2008 3:09 am

    some day, the government of Japan will have to invite a country and a forign people to invade and take over the land of the rising sun. They will ask, or should I dear to say, beg on their knees, to rape their woman so that they once again can have a growing population… That country will probably be China.

  4. Moderator on February 25th, 2008 11:02 am

    BillyBuck:

    First and only warning. 1) Elevate your level of posts. 2) Do not link to non-existent sites.

  5. PLS on February 25th, 2008 1:39 pm

    For people outside of the cities,they grow a tonne of veg/fruit in their backyards(at least here in semi-country Kyushu). I for one have yet to buy a Mikan in the 18 years I have lived here. And often receive other fruit and veg for free or next to nothing when in season!!! People trade amongst themselves, or do without………and try not to spend too much money……

  6. Ken Worsley on February 25th, 2008 5:21 pm

    Vimy, I think the number of alternative places to buy food, especially from convenience stores and 100 yen shops, have cut into supermarket sales. However, household spending on food fell by 0.4% in December, 0.9% in November, and 2.0% in October.

    It will be interesting to see if spending figures continue to fall as prices rise over the coming months.

    There is also the case to be made that the number of single person households in Japan are on the increase, as these people are not included in household spending figures. People who live alone are often reckoned to eat out more often.

  7. Greg L. on February 26th, 2008 11:00 am

    I was interested to find recently that my local 7-11 now sells an 8-slice loaf of bread and milk cheaper than the local super market! That’s probably going to cut my super market trips by about a quarter.

  8. Trans-Pacific Radio » MSDF Resumes Mission, Atago Collides With Fishing Vessel, Supermarket Sales Down Again, and Kazuyoshi Miura Arrested in Saipan: TPR News for Tuesday, February 26, 2008 :: Independent Podcasts from Tokyo, Japan - Japanese News, on February 26th, 2008 11:16 pm

    […] Supermarket sales fell for the 25th straight month in January, dropping 1.7% compared to January 2007. Not only have sales now fallen for 25 straight months, but they have fallen in 46 of the past 47 months. The JCSA data is based on sales at 8,653 shops owned by 78 companies that have been in operation for at least one year. […]

  9. Ken Worsley on February 26th, 2008 11:59 pm

    Greg: I need to look into that myself…if 7/11 is in fact cheaper that’s going to make a difference. Then again, if they would just stock canned tomatoes!

    But you reminded me that I once had this idea for setting up JEN’s own consumer price index. That might have to come back on the drawing board.

  10. 100 Yen Shop on February 27th, 2008 3:02 pm

    I bet it’s even cheaper at the 100 yen shop! Sounds like they are insulated against inflation.

  11. Barter on February 29th, 2008 12:20 pm

    More people are growing food at home!

  12. Ken Worsley on March 13th, 2008 8:24 pm

    100 Yen Shop, that’s an interesting idea. At some point we’ll be seeing changes in what they sell, probably in the form of reduced quantities.

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