Value sales within the Japanese grocery retailers market remained relatively flat through 2012, increasing by 0.4%.
Although convenience stores recorded positive growth of 2.5% in 2012, a sharp decline by traditional grocery retailers such as food/drink/tobacco specialists and independent small grocers negatively impacted overall category growth. Supermarkets, on the other hand, grew their sales by 2% in 2012.
Traditional small grocers continued to see a poor performance in 2012, with a 5% decline in value sales. The channel has declined continuously since 2007 as consumers preferred shopping at chained stores with modern facilities and services.
Additionally, the rise of single-person households and dual working parents created demand for convenience when shopping. Since many traditional small grocers are located outside commuting routes, store location also became one of the key survival factors in the industry.
7-Eleven Japan Co Ltd led grocery retailers with a value share of 10% in 2012. 7-Eleven Japan Co Ltd holds a 32% value share in convenience stores, which account for around one third of aggregate grocery retailers' sales. 7-Eleven Japan Co Ltd has one of the most well-known private label brands, Seven Premium. The company further expanded its private label brand by introducing Seven Gold in 2012. The second biggest company in convenience stores is Lawson Inc with a value share of 20% in 2012.
Both 7-Eleven Japan Co Ltd and Lawson Inc emphasised the premium image of their dessert products and they often outperformed national brands' products. Premium desserts at convenience stores were a major driving force behind increased traffic to the stores in 2012 and helped underpin positive sales performance for the retail channel as a whole.
Value sales within the Japanese grocery retailers market are anticipated to post a compound annual growth rate (CAGR) of under 1% through to 2017. After the Tohoku earthquake, demand for non-perishable food increased, enabling positive growth for grocery retailers in 2011.
For more information on the Japanese grocery retailers market, see the latest research: Japanese Grocery Retailers Market
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