Japanese retailers are investing big in online grocery
A quick overview of the Japanese online market shows that online grocery sales are rising fast. Since the beginning of the coronavirus crisis, many of the retailers have expanded their operations to respond fast to a new type of consumer. Since partnering with Amazon in September last year, Life supermarket has expanded delivery to Tokyo’s 23 wards and four cities in the capital, as well as the city of Osaka. Life is reaching new areas, often unprofitable in the past, delivering groceries using vehicles under Amazon’s services. Orders have been fulfilled as fast as two hours, and at a lower cost than in-house delivery service, according to IGD Asia.
Also, click-and-collect drive-through service is performing well in Japan, as shown by Aeon, who implemented the service in May this year. Customers can pick up their products anytime during store hours. The service is available for some 70 stores throughout Japan. Furthermore, online shopping services are also available at 180 Aeon stores.
More consumers are considering Click & Collect for grocery. Cookpad is a providing a service that allows users to pick up products they order online from shared refrigerators set up at railway stations, drugstores and other locations. The service is available at around 150 locations in Tokyo and Kanagawa Prefecture.
In March, 7&i set up refrigerated delivery lockers at two 7-Eleven outlets in Tokyo. Customers purchasing goods on Ito-Yokado’s online store can have them sent to the 7-Eleven lockers to pick up at their convenience. 7-Eleven has been testing online delivery convenience store service in the Tokyo Metropolitan Area.
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