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Pan Pacific International Holdings Corporation was the leading supermarket operator in Japan in the fiscal year 2024, with sales revenue amounting to over *** trillion Japanese yen. Aeon Retail, a subsidiary of the holding company Aeon Co., Ltd, one of the largest Japanese retail brands, followed in second place. The subsidiary manages the self-operated supermarkets and general merchandise stores of the parent in the domestic retail market.

Supermarkets in Japanese retailing

Categorized by the Ministry of Economy, Trade and Industry as grocery retailers with a sales floor area of at least 1,500 square meters and a self-service method for at least 50 percent of the store area, supermarkets play an integral part in consumer goods distribution in Japan. Close to stores operate throughout the country and generate around *** percent of the total sales in the Japanese retail market. While stores also stock non-food products like clothing, electronic appliances, and small furniture, the main segments are food and beverages. Supermarkets are at the center of food retailing in Japan, where they are trusted to supply households with fresh produce and perishables, along with the rivaling convenience store sector.

Trust in supermarkets and brands

As store retail takes precedence in procuring daily necessities, supermarkets are a highly trusted channel among Japanese consumers. While the COVID-19 pandemic and the resulting restrictions diminished store traffic in favor of online channels, the retail sales of Japanese supermarkets remained on an uptrend thanks to a strong performing food segment. As consumers are unable to forego supermarkets as a point of sale to cover their daily needs, major chain operators build on the trust to expand their businesses through new store openings, private label strategies, and digital services to further the customer experience.