Media365
Japanese retailers are scaling back in north China as fierce competition and weak pricing power erode profitability, forcing store closures in major cities and prompting calls for a sharper localisation strategy.
Groups such as Aeon and Ito-Yokado have closed outlets in Beijing and Tianjin in recent years, highlighting mounting pressure from domestic rivals and shifting consumer habits in the region.
Aeon said it closed three supermarkets in Tianjin and one in neighbouring Hebei province after March 23. The move leaves the group with just one store in Tianjin, after it exited Beijing last year with the closure of its final outlet in the capital.
“Deflation and intense competition are weighing on the profitability of Japanese retailers in north China and coastal regions,” said Kei Ishikawa, associate director at S&P Global Ratings. “Performance tends to be stronger in south China and inland areas, where competition is less intense.”
He added that while food sales remained relatively resilient, apparel and other non-food segments are under pressure, facing stiff competition from fast-fashion players such as Uniqlo.
