×
319
Fashion Jobs
MAHLE
Asst. Manager- Production
Permanent · Greater Noida
POLYCAB
Area Sales Manager - Switches & Switchgear - Ahmedabad
Permanent · Ahmedabad
MEDCIS PATHLABS INDIA PVT LTD
Medcis Path Labs is Hiring For Pathology Area Sales Manager-Chennai
Permanent · Chennai
TIME TECHNOPLAST
Area Sales Manager
Permanent · Andheri
LIFE TURN MANAGEMENT CONSULTANT
sr. Manager Production - Sricity, Tada - Mnc Company - Engineering Ind
Permanent · Tada
MCKENZIE
Hiring For Retail Store Merchandiser / Manager
Permanent · Chennai
V2B GLOBAL CONSULTANTS
sr Technician Apparel -Buying Office
Permanent · Gurugram
MANPOWERGROUP SERVICES INDIA
Opening || Horeca Sales Manager || Kolkata
Permanent · Kolkata
ADIDAS
Senior Product Owner - Machine Learning & ai
Permanent · GURUGRAM
ADIDAS
Senior Technology Consultant - Omnichannel
Permanent · GURUGRAM
PUMA
Manager- Warehouse (B2C)
Permanent · Bengaluru
HARMAN FINOCHEM
sr. Manager- Api Production For Srp With Leading Pharma @ Aubad
Permanent · Aurangabad
PNB HOUSING
Area Sales Manager
Permanent · Thane
PNB HOUSING
Area Sales Manager
Permanent · Pune
JM FINANCIAL HOME LOANS LTD
Area Sales Manager - Home Loans
Permanent · Chennai
DANIEL WELLINGTON
IT Support Specialist
Permanent · MUMBAI
DBS BANK
Hiring For Area Sales Manager - Gold Loan
Permanent · Karaikal
DBS BANK
Hiring For Area Sales Manager - Gold Loan
Permanent · Thiruvarur
DBS BANK
Hiring For Area Sales Manager - Gold Loan
Permanent · Tirunelveli
AVANTOR
Area Sales Manager- Lab Consumables
Permanent · Pune
ADIDAS
Manager Brand Activation Originals
Permanent · GURUGRAM
ZACH LIFESTYLE PVT. LTD.
Manager - Content & Social Media
Permanent · MUMBAI
By
Reuters
Published
Mar 18, 2009
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Japan retailer Aeon cuts national brand prices

By
Reuters
Published
Mar 18, 2009

* Prices of 3,400 national brand items cut 20-35 percent

* Says cuts to own-label items alone not enough

* Companies prepared to sacrifice gross margin

By Taiga Uranaka

TOKYO, March 18 (Reuters) - Japan's second-largest retailer Aeon Co Ltd is marking down prices of 3,400 national brand items by 20 to 35 percent, extending a discounting wave as top stores chains seek to attract increasingly price-sensitive shoppers.

"Customers are seeking low prices," said Aeon President Motoya Okada at a briefing.

Consumers have been sharply cutting back spending to ride out the recession, shunning discretionary items such as clothing and trading down in daily necessities.

Aeon, which operates Jusco general merchandising stores and Maxvalu supermarkets, said last month it would cut prices of a third of its "Top Valu" private label items.

Okada said private label items alone cannot win customers' support and his company also had to mark down prices of national brand goods such as Kao Corp body soap and Ajinomoto instant foods.

Its bigger rival Seven & I Holdings said earlier this week its supermarket chain Ito-Yokado would mark down 2,600 items including cup noodles and shirts by 15 to 30 percent at its 175 stores.

"Since last year's (collapse of) Lehman, the Japanese economy took a sharp turn to worse and the retail environment has become more dire," said Ito-Yokado President Atsushi Kamei.

While Aeon and Seven & I say they have been able to bring down product costs through improvements in procurement and other efforts, they admit gross margin is not their top priority.

"We are sacrificing it more or less," Ito-Yokado's Kamei said when asked about the markdown's impact on gross margin. "It cannot be helped. Now, customers are deciding market prices."

Aeon, which expects its first annual net loss in seven years for the year ended in February, said it would cut about 1.3 billion yen ($13.2 million) in personnel costs by skipping bonuses for executives and cutting salaries for some 1,200 employees in management positions.

"It's wrong to try to secure margin at the expense of sales, and it's not feasible in most cases," Okada said. "We would rather go after topline while cutting costs." (Editing by David Holmes) ($1=98.47 Yen)

© Thomson Reuters 2023 All rights reserved.