Japanese consumers are rethinking their shopping habits as rising prices squeeze their budgets. Kana Sekiya, a 43-year-old Tokyo resident, now drives over 30 minutes to discount supermarkets to buy groceries in bulk, a shift from her previous convenience store purchases. Her experience reflects a broader trend, with convenience stores, or conbini, facing declining customer numbers for 15 consecutive months. In September, customer numbers dropped by 3.8% year-on-year, the steepest decline since the pandemic.
The economic implications are significant, as private consumption accounts for about half of Japan’s GDP. Analysts warn that increased household belt-tightening could weigh on the broader economy. Underlying inflation rose in September at the fastest annual pace in three years, exceeding the Bank of Japan’s 2% target. The bank is likely to signal a rate hike by October 30, potentially taking the economy into uncharted territory.
Conbini operators are struggling to adapt. Seven & i, which operates around 23,000 outlets, introduced a lower-priced house-brand range, Seven The Price, to attract cost-conscious shoppers. FamilyMart is offering morning discounts on items like bread and rice balls. However, competitors such as pharmacies and mini-supermarkets are gaining ground by emphasizing value for money. Seiyu, acquired by discount chain Trial Holdings in 2025, saw a 6.9% year-on-year increase in customer numbers in September.
To diversify revenue, conbini operators are exploring non-food options. FamilyMart is installing crane games and capsule-toy machines in about 5,000 stores, while Lawson has added toy machines to about 1,500 locations. The broader retail sector is also feeling the pinch, with Fast Retailing scrapping a planned price hike for a colour socks line, citing the essential nature of the item.