Japanese consumer spending and retail trends

Japanese retail trends show a growing focus on value brands and seasonal products. At the supermarket chain Seiyu, the private brand ‘Minasama no Oshitsuki’ has gained traction through strict quality control, with popular items including various retort curries. Additionally, seasonal items like Shine Muscat grapes and Hokkaido pumpkin are featured in promotions, while Costco Japan’s ‘Shine Muscat Daifuku’ has become a social media trend due to its cost-performance ratio.

As inflation rises, consumer behavior is shifting toward thriftier shopping habits. Data from the Japan Franchise Association indicates that customer numbers at convenience stores have declined for 15 consecutive months, with a 3.8 percent year-on-year drop in September. This decline represents the largest drop since the COVID-19 pandemic.

With underlying inflation exceeding the Bank of Japan’s 2 percent target, analysts warn that increased household belt-tightening could impact national economic growth, given that private consumption accounts for roughly half of Japan’s GDP. Retailers such as Seven & i have noted that the consumer desire to save has exceeded expectations amid pressure from a weak yen and rising costs.