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Tesco failed to imprint itself on this fragmented, hyper-crowded and competitive consumer market. Japan's notoriously conservative and fussy shoppers simply had too many other choices.

20 Comments

Columnist David McNeill, on why British supermarket chain Tesco failed in Japan. (The Independent)

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NO, it was purely due to severe recession. Demestic sales are down for decades and economy is shrinking faster than anywhere else.

-4 ( +0 / -4 )

Over 100 stores in Tokyo - were they anywhere else in Japan?

0 ( +1 / -1 )

Japan's notoriously conservative and fussy shoppers simply had too many other choices.

Whenever I walk into Japanese supermarkets, I find anything but choice. I get bored of the same fruit and vegetables. What happened to the lovely South Asian mangoes or the South-Asian fruits? Does everything have to be so expensive? Why are all the cucumbers from Fukushima? Why are all the peaches either from Fukushima or nearby?

The Tesco's I used to go to was small but had a nice selection of British cookies and biscuits - ie cookies without all that trans-fat. Looking for Japanese cookies without shortening is like looking for a needle in a haystack. Gonna miss my Borbon biscuits. For only 150 yen, they also used to sell large packets of brown pasta, containing something which the Japanese seem to be averse to - fiber! And they also used to have large discounts on selected drinks. Their selection was small, but it still made a difference. To be honest, I found the Tesco's in Shanghai to have more choice than the average Japanese supermarket.

2 ( +3 / -1 )

Never heard of them.

-4 ( +2 / -6 )

They did have a bit of selection, curry sauce, some brown pasta, nice biscuits, some decent tea, but it was nowhere near enough. Their policy of only opening small stores was their downfall I think. There are many tiny little shops in Tokyo, with no room to move, or for a wide selection of goods. If they had opened decent sized stores, sold some household goods, at least as wide a selection as Yamaya, plus imported vegetables, and some big blocks of cheese, If they had ready meals you could heat up and serve, like they do in the UK, they might have been able to make it here. They did nothing that others are not doing. they might have been able to distingush themselves from the many other tiny little grocery shops.

I just want Costo to open more stores.

2 ( +2 / -0 )

They did have a bit of selection, curry sauce, some brown pasta, nice biscuits, some decent tea, but it was nowhere near enough. Their policy of only opening small stores was their downfall I think. There are many tiny little shops in Tokyo, with no room to move, or for a wide selection of goods. If they had opened decent sized stores, sold some household goods, at least as wide a selection as Yamaya, plus imported vegetables, and some big blocks of cheese, If they had ready meals you could heat up and serve, like they do in the UK, they might have been able to make it here

I think they were trying to not to make the same mistakes as Carrefour, who did exactly that, opening big stores with lots of imported food, but failed.

They recognised that the Japanese market is very different to other places, and I think they were trying to take a more conservative, risk-averse approach, starting slowly and understanding the market before growing. Personally, I think they just gave up way too soon. They had failed to imprint themselves but the only way to really do that in the longer term is to differentiate and they didnt even get that far.

Shopping habits within Tokyo at least are completely different - people shop far more often and with smaller baskets. The distribution system here means that fresh fruit and veg is not as fresh as other areas, and that is one concern, plus storage space for a big shop, and a keen desire to pick up bargains and discounts, amongst others.

There is a crazy amount of fragmentation within the market here, and a lot of protection goes on to maintain that. But I think there IS definitely a market for CHEAP import goods (especially given recent events) and pleasant, easy to use supermarkets with high level customer service. More choice is also desperately needed, and quality controls could do with being looked at.

Im disappointed. I dont think Tesco gave it nearly long enough and I think with the right people in management and a measured amount of risk they could have made a big impact here in the longer term.

1 ( +1 / -0 )

Tesco's is a horrible place, where hope goes to die.

0 ( +2 / -2 )

Never knew they were here, but pointless selling the same goods as 25 million other supermarkets, need some variety as all stores have exactly the same boring goods, there is no selection in this country's shops.

Sometimes I need to go to 3 different stores to get different items that the other bland supermarkets dont sell.

Carrefour started out with potential then moved into more and more japanese sameness products that can be bought in any super, its ridiculous. no imagination and everyone has to eat the same bland crap, no thanks, thank fork for costco.

0 ( +0 / -0 )

In my opinion Tescos got themselves caught in the middle of trying to be a convenience store and a supermarket. Most of their stores were only a little bigger than a combini, but you couldn't do combini things there like pay your bills. They were also too small to be considered a proper supermarket.

1 ( +1 / -0 )

Like I said.

Wife used to love to shop at the local Tsurukame but it always felt like a japanese discount store(same selection). For overseas food we always went to other shops(Kaldi, Carnival, etc).

We never knew that Tesco had stores in Japan.

1 ( +1 / -0 )

When I go to Tesco-Lotus in Thailand I feel like I'm in supermarket heaven-the choice is so extensive compared to the shops here, and the prices are so much better too!

1 ( +1 / -0 )

Kaldi is great, lots of selection - we need more stores like Kaldi in Japan.

I'm sure not all japanese are content with boring rice and mizo soup everyday.

2 ( +2 / -0 )

I was just in Thailand, where they are everywhere. I think the problem is the slow acceptance of international foods here in Japan, it happens, but at a hard to determine pace. Take Indian food- it's everywhere now, though for years was on the sidelines, but in my city (Kashiwa), the two Vietnamese/Thai restaurants we had recently closed down, which saddens me as they were some of the best places to go for something different. One of them defaulted to a ramen shop, to my eyes just like any other.

Maybe Tesco could have kept trying, or tried to do more to fit into the Japanese 'scene', I don't know. I go to Kaldi and Costco for choices. really glad to have them around.

0 ( +0 / -0 )

This columnist clearly never lived in Japan, or never had to go shopping for himself. If he had, he'd have found Tesco's to be a life saver if you want to eat something from home once in a while. Feel sorry for my gaijin mates still in Japan who crave a simple fry-up one morning and can't get one of the basic ingredients for it easily.

0 ( +0 / -0 )

Supermarkets in Tokyo are not great - too small, too limited a selection. I would like to buy Marks and Spensers style ready meals, instead of bentos if I dont want to cook. Ingredients are in tiny packets, veg is generally limp and old, hard to find organic fruit and veg, and limited imported supplies of anything.

How wonderful it would be to find Waitrose or M and S quality supermarkets in Japan, fresh, good quality and huge selection. Even a Whole Foods would be appreciated. I dont know what I would do without Yamaya and Kaldi!

0 ( +0 / -0 )

This comment leaves me clearly puzzled. Has this guy ever been to Japan? I can only see a few chains controlling the whole market, which is anything but fragmented, hyper-crowded and competitive. Or does he feel like this because the UK retail market is extremely monopolized?

0 ( +0 / -0 )

I would like to buy Marks and Spensers style ready meals, instead of bentos if I dont want to cook.

That reminds me. The salads available here in Japanese supermarkets are absolutely boring - no imagination. 300 yen for a box of salad (most of it shredded cabbage). M&S does appetizing salads, as does many supermarkets in US and UK. Absolutely FA for vegetarians too.

he'd have found Tesco's to be a life saver if you want to eat something from home once in a while.

The ironic thing is I don't really go to Tesco's when I'm in the UK. It's when you're in Japan, you realize just how better the UK supermarkets are in terms of choice and price.

I think Tesco's have done the right thing (for themselves) by leaving. There's much more to be made in countries like China. It's a catch-22 situation here - if you want to branch into Japan, you need to act like the others and offer the same thing, nothing too foreign, otherwise the Japanese shoppers won't come. And yet, if you do that, what's the point of opening up here.

One more thing, not that Tesco's here helped, but the bread available in Japanese supermarkets is atrocious. No granary, no brown bread. Just sweet white marshmallow (expensive too)

0 ( +0 / -0 )

TeachmeteachyouSep. 05, 2011 - 01:13PM JST

the two Vietnamese/Thai restaurants we had recently closed down, which saddens me as they were some of the best places to go for something different. One of them defaulted to a ramen shop, to my eyes just like any other.

Thats all they know ramen, ramen, and ramen. Everytime a restaurant closes down there will always be a ramen shop to take its place, who boring.

No imagination or adventure towards food here, just eat the same boring bland crap everyday.

1 ( +1 / -0 )

Back on topic please.

who boring. = how boring

0 ( +0 / -0 )

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