Major supermarket chain Ito Yokado has completed its plan to close three stores across the Kanto region, marking the end of its scheduled store closures. This round of closures, finalized on February 24, 2023, includes the Ryugasaki store located in Ibaraki Prefecture, which was one of the last remaining locations in the area.
Today, shoppers at the Ryugasaki store reflected on their fond memories of the supermarket, which has been a staple since their childhood. One shopper expressed, "It's sad. I used to come here often since I was little," capturing the nostalgia felt by many as they witnessed the store's final operating day.
The decision to close these stores is part of Ito Yokado’s broader strategy to address its financial struggles. The company has faced persistent challenges over the years, resulting from increased competition and shifting consumer behavior. To combat these issues, Ito Yokado announced plans to reduce its store count as part of structural reforms, which has led to the closure of 33 locations across Japan, one year earlier than initially projected.
With today's closures, Ito Yokado now operates only 92 stores, halving its numbers from the peak of 189 locations just six years ago. This significant reduction reflects not only the company's struggles but also broader trends affecting large retail chains throughout the nation.
Shoppers gathered today at the Ryugasaki location to mark its closing, sharing stories and expressing sadness over the loss of what many considered their local shopping hub. One customer stated, "There haven't been any stores since the new town was built. I found it very convenient," highlighting the integrated role the store played within the community.
Parent company Seven & I Holdings is currently undergoing significant changes as well. They have initiated the process of establishing intermediate holding companies for their various brands, including Ito Yokado. This restructuring involves proceeding with plans to sell over half of their shares to U.S. investment firm Bain Capital, which has been granted preferential negotiation rights.
The realignment aims to focus more effectively on the retail sector by revitalizing operations and could lead to new strategies being adopted by Ito Yokado moving forward.
Looking to the future, the completion of the closure plan marks not just the end of operations for certain locations but also suggests significant shifts within the grocery retail market. Ito Yokado's current strategy will likely shape how grocery shopping evolves for consumers across Kanto and beyond.
With the closing of these locations, communities are left to adapt. The personal impact of losing such landmarks is expected to resonate long after they’ve shuttered, as reflected by the heartfelt sentiments of shoppers one final time at the Ryugasaki store today.