Japan In The News: Japan Learns to Live with Deflation
With the aftermath of the recent global recession, the US and other industrialized countries worry about deflection (though you also hear about the potential of inflation among others) as a possible impact. A recent article in Bloomberg BusinessWeek titled “Japan Learns to Live with Deflation” describes the rise of the 100 Yen (Dollar) store and other discount stores as consumers deal with decreasing prices, along with lower salaries and home values. Very interesting article, a recommended read.
While living in Tokyo for almost 3 years (2007-10), we certainly shopped regularly at the 100 Yen stores such as the Daiso store pictured below in Harajuku.
In 2005, McDonalds introduced a number of items on its famous menu for 100 yen, including its hamburger which had sold for 210 yen in 1990. I hate to admit that we did visit McDonald’s many times during our stay in Japan.
As well, the article also mentions the popularity of Uniqlo, a popular clothing retailer offering lower priced clothing. Fast Retailing plans to open 44 Uniqlo stores worldwide this year.