Japan retail and food delivery sectors show divergent performance trends

Japanese department stores saw a 2.6% year-on-year increase in sales for August, reaching approximately 422.1 billion yen. According to the Japan Department Stores Association, this marks the eighth consecutive month of growth. While customer numbers fell by 4.0% due to weather-related store closures and shortened hours, high-end luxury goods drove overall revenue upward. Food sales remained steady, supported by seasonal gift demand.

In the food delivery sector, results have diverged based on customer engagement strategies. Demae-can reported an 8.2 billion yen net loss for its fiscal year ending August 2026, marking its eighth consecutive year of deficits. The loss was driven by rising compensation costs for delivery personnel despite stable revenue.

Conversely, companies with strong direct digital channels are seeing record success. McDonald's Japan reported record high sales and net profits, noting that approximately 70% of orders now come through digital channels, including its official app. Similarly, Toridoll (Marugame Seimen) has achieved record performance. The contrast highlights the importance of owning customer data and loyalty through proprietary apps rather than relying solely on external delivery platforms.