The failure of multinational food retailers in Japan: a matter of convenience?

Abstract

Purpose

The purpose of this paper is to address the question of why world major supermarket chains have been unsuccessful so far in the Japanese market. The paper considers arguments from the literature that differences in consumer attitudes and behaviour between the two markets may be the determinants of the success, or otherwise, of the large US and European supermarkets.

Design/methodology/approach

A review of literature about Western and Japanese retailing is followed by an account of exploratory empirical research into Japanese consumer grocery purchasing and consumption behaviour.

Findings

The results support an argument that the large store “one‐stop shopping” supermarket format popular in the UK/EU is not and will not be the preferred format in Japan. Convenience, matters, but it is not the same concept as in the UK, for example.

Research limitations/implications

The sample survey is purposively biased towards younger female shoppers from the working population who will have a significant impact on future consumer behaviour patterns. Results are more inferential than statistically validated hypotheses.

Practical implications

Supermarket chains should open a larger number of smaller stores, concentrating on frequently delivered and high quality products, above all in the fresh foods categories. Moreover, the growth of the small “convenience” store format in markets such as the UK and California suggests that “western” consumers' desires for convenience are becoming more like those of Japanese consumers.

Originality/value

The paper shows that there has been little effort, to date, to demonstrate through primary research whether unique characteristics and buying behaviour do exist in the Japanese marketplace.

Citation

Haddock‐Fraser, J., Poole, N. and Doishita, M. (2009), "The failure of multinational food retailers in Japan: a matter of convenience?", British Food Journal, Vol. 111 No. 4, pp. 327-348. https://doi.org/10.1108/00070700910951489