GAIN Report Global Agriculture Information Network
Foreign Agricultural Service GAIN Report Global Agriculture Information Network Required Report - public distribution Date: 8/8/2000 GAIN Report #JA0510 Japan Retail Food Sector 1999/2000 Interim Update Approved by: Terrence Barber, Executive Director U.S. Agricultural Trade Offices, Japan David Miller, ATO Tokyo Drafted and Prepared by: Terrence Barber, ATO Japan Karen Halliburton, Deputy ATO Tokyo Report Highlights: In 1999, total national supermarket food sales declined 3%. Results remain to be seen from the large-scale supermarket, convenience, and home meal replacement (HMR) subsectors in which U.S. Agriculture enjoys comparative advantages. These subsectors demonstrated substantial growth in 1998 despite stagnation of the overall supermarket sector and general recession. 1998 retail sales in Japan’s retail food sector reached nearly $380 billion. Large-scale supermarket food sales rose 5.4% nationwide in 1998, with key regions registering as high as 17% growth. HMR sales gained 3.5%, with some national retailers registering as high as 7% growth in HMR. ATO Tokyo expects an eventual slowdown in these subsectors, as new store openings taper due to the official one-year moratorium on new stores which commenced June 2000. Large-scale supermarket chains are streamlining distribution, while seeking direct overseas private label sources. Processors with entrenched domestic and third-country sources are tying in closely with top retailers, applying "efficient consumer response" systems, potentially locking U.S. suppliers out long-term, absent an aggressive and immediate marketing response. Includes PSD changes: No Includes Trade Matrix: No Annual Report Tokyo[JA1], JA GAIN Report # JA0510 Page 1 of 22 TABLE OF CONTENTS PREFACE: A CALL FOR ACTION .....................................................
[Show full text]