Japan's small supermarkets outpace bigger rivals amid rising prices
29/08/2024 07:53
** Japanese supermarket chain operators Trial Holdings
141A.T and Genky Drugstores 9267.T outperform their bigger
rivals this year as investors bet on their ability to offer low
prices amid rising inflation
** Besides their cheap but quality prepared meals, the duo
also benefit from lower labor costs in regional cities, says
Zentaro Yamada, analyst at Tachibana Securities
** Trial Holdings has surged 48% since its March IPO, with
most gains since early Aug after it posted 37% jump in FY annual
operating profit
** Genky, a drug store chain operator that focuses on fresh
food and prepared meals, has risen 40% this year, with most
gains since late July after it posted a 34% jump in FY operating
profit
** Meanwhile, their bigger rivals Aeon 8267.T and Life
8194.T have risen 18% and 8%, respectively, this year
** Retail giant Seven & i Holdings 3382.T has closed some
Ito-Yokado supermarkets and is set to close more outlets as they
struggle to compete with specialty outlets and discount stores
(Reporting by Junko Fujita)
((junko.fujita@thomsonreuters.com;))