Japan's Supermarket Sales Continue Growth Trend into 2024

In 2024, the retail landscape in Japan witnessed a notable increase in supermarket sales, marking a 2.7% rise from the previous year on a same-store basis, as reported by the Japan Chain Stores Association. This growth represents the fifth consecutive year of sales increases, with total sales across all supermarket outlets reaching an impressive ¥13 trillion.

The surge in sales can be attributed to several factors, including price increases in staple items such as rice and various vegetables, including cabbage. Despite the higher sales figures, data indicates a continued decline in the number of items purchased, suggesting that consumers are becoming more budget-conscious.

Food sales, which constitute roughly 70% of the overall supermarket sales, experienced a significant uptick of 4.4%. This increase is largely driven by price hikes implemented by manufacturers as well as the rising costs of essential food items like rice and vegetables. Additionally, the market for home-related products also saw growth, with a 4.4% rise in sales attributed to a spike in outings, which in turn boosted cosmetics sales. Notably, strong sales of emergency supplies further contributed to the overall increase in supermarket revenues.

Conversely, the apparel sector faced challenges, experiencing a contraction of 5.4%. This decline in clothing sales is primarily linked to diminished demand for winter apparel, including coats, which can be partly attributed to the relatively mild weather conditions observed from October through December.

In December alone, supermarket sales across all outlets reached ¥1.3 trillion, reflecting a 3.0% increase compared to the same month the previous year, marking the second consecutive month of sales growth.