Polarization of Supermarket Business Outlook

The Performance of Supermarkets Amidst the Whirlwind of Food Price Increases.

Yaoko’s Q2 net profit soars 27%, setting 2-year record high. Discover how our pricing and cost-efficiency measures drive unprecedented profitability.

Source: Nikkei Nov 14th 2023

Yaoko reported a 27% YoY increase in net profit to ¥13.6 billion for April-September 2023, marking a two-year high. Factors include higher unit prices due to food price hikes, successful sales promotions addressing consumer spending polarization, and increased gross profit offsetting costs. Operating revenue reached a record ¥3049 birillion, with same-store sales for Yaoko alone rising by 7%. Operating profit increased by 22% to ¥19.4 billion. President Kawano expects the upward sales trend to continue, but uncertainties remain about customer spending habits. The full-year forecast remains unchanged, with net profit expected to rise 1% to ¥16 billion.
Yaoko’s standalone existing-store sales increased by 7%, driven by a 4% rise in average spending and a 3% increase in customer traffic. Successful promotions, including “Select 100,” attracted price-sensitive young families. Private brands recorded a 10% revenue increase.