Thursday, January 21, 2021

Japan Supermarket Sales:

 https://mainichi.jp/english/articles/20210122/p2g/00m/0bu/024000c

Article:

TOKYO (Kyodo) -- Japan's supermarket sales in 2020 rose 0.9 percent from the previous year on a same-store basis, increasing for the first time in five years on higher food sales, as more people ate at home during the novel coronavirus pandemic, an industry body said Thursday.

    Sales at supermarkets, including newly opened ones, operated by 56 companies totaled 12.76 trillion yen ($123.34 billion) in 2020, up 2.6 percent, according to the Japan Chain Stores Association.

    While food sales on a same-store basis climbed 4.7 percent, those of clothing dropped 16.9 percent, as increased teleworking caused demand for business suits to decline, the association said.

    The year's rise was partly trimmed by a decline in overall private consumption as sales in 2019 were partly lifted by a temporary spending increase ahead of the nation's consumption tax hike from 8 percent to 10 percent in October that year.

    "The trend of consumers trying to save money and protect lives will continue under the new life style of living with the new coronavirus," an association official said in a press conference.

    In December alone, supermarket sales rose 2.7 percent from a year earlier on a same-store basis for the third straight month of increase.

    Ideas:

    Its only logical that supermarket sales would increase during the pandemic period, and very logical that consumers were avoiding going to restaurants.

    Of course there is also the idea that maybe some workers were working at home and didn't go to restaurants near their place of work and or wherever they go after work.

    And it logical that clothes stores would see a drop in business suits. But at the same time maybe sales at Uniqlo or GU might have increased as consumes opted for more relaxed clothes that they could wear at home.

    Yes, the idea maybe that consumers overall might be down because of the pandemic situation and the worry about jobs and incomes. 

    The increase from last year of course was the decrease 2019 due to the sales tax increase from 8 percent to 10 percent. So its only natural that there might have been a slight increase from a year ago despite the worries about the pandemic situation.

    Supermarket sales most likely will continue to increase and of course as restaurants innovate they will be begin to offer more online orders for takeout and delivery as a way to survive.

    Its possible, it not already, supermarket will begin to have an online presence related to offering pickup service and delivery services as a way to boost sales.

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