ALL REPORTS / RETAIL JAPAN

Retail Japan

2020

EXECUTIVE SUMMARY

5-key points highlight of Japan’s retail landscape

  1. 2.1 percent growth of 10 mixed merchandise channels in 2018 is triggered by the steady growth of households’ spending trend in recent years on food category items.
  2. Tokyo Olympics would drive growth of 10 major channels in 2020 but unforeseen complications of the consumption tax increase process may test retailers’ resilience and endurance.
  3. Market size of total e-commerce valued at close to JPY10 trillion has not grown to its fullest potential, deterred by the slow growing speed for food category with e-commerce ratio of 2.6 percent.
  4. 2 challenged channels, GMS and Department store shrunk in size and growth. 2 mega retailers in Japan face major revenue setbacks in GMS and recovery not in sight.
  5. Japan’s 2nd biggest winning channel, Convenience store has broken the chain of consistent growth tendency of the past 77 months, which ended in July 2019, and dysfunctional franchisees’ business models are under review.