Aeon launches discount format in Japan

With high food prices heavily impacting on the bottom line of all Japanese supermarkets, Japanese retailer Aeon will opening its first discount food store in Tokyo this month. The store will offer low-priced products from small- and medium-sized companies, but will eventually sell house-brand Topvalu items

In response to whether or not Aeon would adopt a European format for the store, a spokeswoman commented: "We will continue to try and develop new store concepts and styles which may suit our customers. In that sense, this is one of many methods to consider. Aeon will introduce new styles, but not only European discounting styles. However, no concrete decision has been made yet."

Price competition is expected to intensify among retailers, given that industry leader Seven & i Holdings Co. entered into the discount store business in late August, selling groceries and other items at 25-30% less than at its Ito-Yokado superstores.

Aeon operates large-scale general merchandise discount stores known as Aeon Supercenters in Japan's northeastern region of Tohoku. It also runs Megamart large-scale suburban discount stores that mainly sell clothes and household items.