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The Japanese retail industry recorded around *** trillion Japanese yen in sales in 2024, the highest value in the past 17 years.
While non-food products constitute a significant share of the industry, food and beverages represent the largest segment in domestic retail trade.

Retail channels

The Japanese retail market is characterized by the strong presence of brick-and-mortar store retailing. Even though the e-commerce sector is emerging, consumers prefer physical stores to purchase everyday goods, cosmetics, and foodstuff in particular. However, non-store retailers are gradually gaining traction as potential customers are taking advantage of fast shipping and efficient customer services.

Retail stores

Retail stores in Japan encompass a variety of physical stores, ranging from small specialty retailers to large department stores. Within the food and beverage segment, supermarkets and convenience stores, so-called konbini, are the main points of sale for grocery shopping. In the non-food segments, department stores with their broad product range are competing with specialty retailers. Additionally, supermarkets are joining the competition, with fashion items reported as a major revenue source after foodstuff.