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Supermarket chain Jusco has passed Ito-Yokado as Japan's most profitable retailer. Its pre-tax profit of 23 billion Yen (about 200 million USD) is 3 billion yen more than Ito-Yokado's. In addition to its supermarket chain, Ito Yokado is operating 7-Eleven convenience stores in different countries of the world. Also Jusco is established outside Japan, in the Asian region.

 

In Japan, convenience stores abound and have been successful to the extent that the market starts to be saturated.  After competitor Family Mart announced the closing down of 500 stores - while opening 450 new ones - 7-Eleven shares fell.

Altogether, competition is now increasing in Japanese retail and wholesale trade as foreign multinationals make use of the opening up of the market. Carrefour and Costco are already in place, with Wal-Mart, Metro and others set to follow suit. This will be felt also in the wholesale sector, which traditionally has operated in a protected environment. The large retailers can be expected to bypass wholesalers wherever they can, to cut prices.

Rising unemployment, deteriorating purchasing power and stagnant prices are other problems, with which Japanese commerce has been coping lately. There is an increased use of part-time personnel and various a-typical work patterns start to be an everyday occurrence. Uni-Commerce affiliated trade unions JUC and Zensen are both engaged in merger processes, which will further strengthen their possibilities to protect workers' interests in this new situation.