Japanese Supermarket Chains and Labour Costs- Part 1:

Japan is often alleged to have an outdated and inefficient retail system. Detailed studies are needed to underpin these allegations. In this paper we do this for the retail sector of supermarkets. We study 18 Japanese supermarket chain store corporations. Characteristics of Japanese supermarkets are given in an historic overview. A labour cost relationship is estimated with data of 918 establishments. This relationship has already been established, tested and confirmed in many studies on European retailing. In part 1, we show that Japanese chain store corporations diversify in assortment composition as well as in service level. In part 2, labour costs of Japanese supermarkets are studies in more detail. We find statistical support for higher labour costs by more use of part-time employees, higher service level and village based stores. Furthermore, we compare labour costs of Japanese supermarkets with labour costs of French variety stores, supermarkets and hypermarkets. We find no differences in labour costs between Japan and France.