Japan’s largest supermarket group, Aeon Co, reported a drop in second quarter operating profit of 8.6 per cent compared to the same period last year, according to Bloomberg.com.
Profit dropped to 36bn yen (US$360m) for the quarter as Japanese consumer confidence reached a record low.
“Amidst a harsh economic environment, we face an increasing cost-conscious consumer,” the company said. “Our domestic supermarket operations saw a decline in profit.”
Household spending in Japan fell 4 per cent in August, and the country is experiencing the fastest inflation in a decade.
Aeon announced in July it would close 40 general merchandise stores over the next two years, and the company also said it would expand mall development in China to cover the weakness in its Japanese business.
