Japanese Retailers Feel Pinch of Weakening Yen Despite Intervention Efforts

Taku Ueno, chief executive of Takara MC, which operates 43 supermarkets in Japan, is struggling to cope with the falling value of the yen. The currency has weakened despite intervention efforts by the Japanese government in 2022, 2024, and 2026.

The yen's decline has increased costs for Ueno's business, particularly when importing goods such as beef from America, olive oil from Spain, and tomatoes from Italy.

Even after a rare joint US-Japan currency buying effort in August and July this year, the exchange rate remains under pressure. This poses challenges for Japanese retailers who rely on imported products to stock their shelves.