New Muji stores will focus on expanding grocery sales | WARC | The Feed

New Muji stores will focus on expanding grocery sales

Japanese retailer Ryohin Keikaku plans to expand its grocery business significantly by dedicating almost a third (30%) of space at its new Muji stores to high-end food and drinks.

It comes after the company witnessed 60% growth in food sales at the end of last year, driven by more people being required to work from home because of COVID-19. Ryohin Keikaku expects this consumer trend to continue even after the pandemic ends, reported Nikkei Asia.

The details

• Ryohin Keikaku plans to open 50 new Muji stores by August 2022 with half of them located in major supermarkets, such as Ito-Yokado.
• About 30% of retail space will be given over to environmentally friendly and high-end groceries, including fresh baked bread, bento boxes ‘of the day’ and locally sourced fruit and vegetables.
• The emphasis on quality will come with higher prices and the company plans to focus on rural areas rather than city centres.
• It is expected that a wider range of food and drink products will encourage more frequent visits per customer, who then may also spend more on clothing and other non-food products.