Aeon Group and Lawson Store 100 have launched opposing pricing strategies to maintain customer traffic amid rising costs in Japan.

These moves signal a deepening battle for market share as retailers attempt to shield consumers from inflation while managing their own operational margins.

Aeon announced on Monday that it will freeze prices for approximately 3,500 private-brand items [1]. The company operates about 10,000 stores across the country [3]. To maintain these price levels, Aeon is diversifying its supply chain and optimizing logistics.

Mitsuko Tsuchiya, president of Aeon TopValu, said the company is changing the countries of origin for imports, such as sourcing pasta from Turkey instead of Italy. She also said the company has compressed the packaging of box tissues to reduce transportation costs without reducing the amount of product inside.

While Aeon focuses on price stability, Lawson Store 100 is pursuing aggressive price cuts. Starting May 6, the chain reduced the price of its popular Twin Chou Custard & Whip from 138 yen to 106 yen, a decrease of approximately 30% [5].

Lawson Store 100 operates 565 stores as of the end of March 2026 [4]. The company is using these price reductions to drive foot traffic and increase overall sales. This strategy has shown early success in other categories; the company reported that sales of discounted rice balls increased by approximately 10% [6].

Aeon's approach leverages its ability to manage the entire process from raw material procurement to sales through its private brand. In contrast, Lawson Store 100 is using high-profile price drops on specific popular items to lure shoppers into stores during a period of high price volatility.

“Aeon announced on Monday that it will freeze prices for approximately 3,500 private-brand items.”

The contrast between Aeon's broad price freeze and Lawson Store 100's targeted discounts highlights two different survival tactics in a high-inflation environment. Aeon is betting on the scale and efficiency of its private label to provide stability, while Lawson is utilizing 'loss leader' style pricing on popular snacks to maintain volume. Both strategies reflect a shift where Japanese retailers are no longer just passing cost increases to consumers but are instead absorbing them to prevent customer churn.