A major Japanese supermarket chain has launched new store formats called "Mommy Plus" and "Coco Toku" featuring deeply discounted food items [1].
These new business models target budget-conscious consumers by significantly lowering the price of daily staples. This shift comes as retailers seek new ways to maintain customer loyalty amid fluctuating economic conditions in Japan.
At these new locations, the retailer has set the price of onigiri, or rice balls, at 74 yen [1]. Additionally, bento lunch boxes are being sold for 200 yen [1]. These prices are lower than standard offerings at traditional supermarket outlets.
The company is utilizing these specific store formats to implement a low-price strategy that differs from its primary brand. By separating these discount models into distinct identities, Mommy Plus and Coco Toku, the retailer can experiment with aggressive pricing without altering the price structure of its existing flagship stores.
While the specific name of the parent company was not disclosed in the report, the rollout of these formats suggests a broader trend toward extreme discounting in the Japanese retail sector. The stores focus on high-volume, low-margin staples to attract foot traffic and provide essential food options at accessible price points [1].
“onigiri, or rice balls, at 74 yen”
The introduction of these hyper-discount formats indicates a strategic pivot by major Japanese retailers to capture the low-end market. By creating separate brands for discount goods, companies can protect the brand equity of their premium stores while simultaneously competing with hard-discounters and convenience stores for price-sensitive shoppers.
