Consumer Sentiment in Japan Is Getting Bleaker, Says EY-Parthenon’s Kobayashi

The video discusses the slow growth of Japan's retail sector, highlighting a 1.2% year-on-year increase and declining consumer sentiment. It examines the challenges faced by Seven & I Holdings, including limited domestic growth and labor issues, while noting potential growth in North America. The impact of a proposed sales tax on consumer behavior is also analyzed, with expectations of a rush on big-ticket items before the tax hike and a subsequent drop in demand.

What is the current growth rate of the retail sector in Japan?

• 2.5% year-on-year

• 0.8% year-on-year

• 1.2% year-on-year

• 3.0% year-on-year

What is one of the main challenges faced by Seven & I Holdings in Japan?

• Excessive whitespace for new stores

• Increasing personal visitors per day

• Labor crunch affecting profitability

• Strong relationship with franchisees

Which region offers more growth potential for Seven & I Holdings?

• Australia

• Europe

• North America

• Asia

How will the upcoming sales tax increase affect day-to-day staples?

• Increase the tax to 10%

• No effect on tax rate

• Maintain the tax at 8%

• Decrease the tax to 5%

What is the expected consumer behavior before the sales tax hike?

• Shift to online shopping

• Stable purchasing patterns

• Rush to buy big-ticket items

• Decrease in purchases