Japan’s retail industry faces many difficulties
In addition, personal consumption accounts for more than 50% of GDP Japan also fell in the first quarter of the past. As a result, the growth of the world’s third largest economy in the first three months of the year fell to negative levels.
Daiso Japan – a famous Japanese supermarket brand that prides itself on low prices and a wide variety of items. The products are all sold for 100 Yen (about 0.77 USD), which is welcomed by Japanese consumers.
However, the Russia-Ukraine conflict is disrupting the supply chain, plus the weak yen makes it difficult to import goods and prices can no longer be competitive.
People buy goods in a supermarket in Tokyo, Japan. (Photo: Kyodo)
“About 70% of our goods are imported from abroad. Due to increased transportation costs, gasoline prices and a depreciating local currency, our business expenses are much higher than before. Products Plastic products are now very difficult to import,” said Mr. Goto Koichi, Representative of Daiso Japan’s External Relations Department.
Many retail businesses have also considered using domestic goods as inputs because they cannot compensate for cost losses by increasing selling prices.
However, the latest data from the Bank of Japan showed that the wholesale price index among domestic enterprises increased by 10% in April, a record high in 40 years.
“Our products are all priced at 100 yen. As costs increase, we have to use different ways to keep prices down. For example, we try to optimize the volume of goods on the same area. to reduce shipping costs or to split some goods. I hope the international situation will calm down as soon as possible so that we can provide better goods and services to consumers,” said Mr. Goto. Koichi added.
To restore economic growth, on Tuesday (May 17), the Japanese government approved an additional budget of 21 billion USD, to urgently support importers and subsidize gasoline. , a direct cash subsidy for low-income households with underage children with an allowance of 50,000 Yen/child.
However, experts worry that if the yen remains weak, it will make it difficult for business owners to make decisions to increase wages for employees, thereby further reducing consumer spending. Not to mention, the increasing saving trend in living habits will greatly affect economic growth in general.
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