Japan’s convenience store industry has recorded its highest-ever sales, but is facing declining customer traffic, as rising prices and shifting consumer behavior present growing challenges.

TOKYO, JAPAN (MERXWIRE) -Japan’s convenience store industry has long been an essential part of daily life, offering a wide range of services from rice balls and boxed meals to ATMs. According to Japan’s Ministry of Economy, Trade and Industry, the number of convenience stores nationwide exceeded 56,000 in 2025, while total sales surpassed 13 trillion yen, both setting new records.

However, behind these strong figures lies a growing concern. The Japan Franchise Association reports that annual store visits stood at around 16.3 billion in 2025, still below the pre-pandemic level of 17.7 billion in 2019 and marking the first decline in four years (down 0.2%). This indicates that fewer customers are visiting convenience stores.

Despite the drop in foot traffic, overall sales continued to grow, largely driven by higher prices. Food products account for more than 60% of convenience store revenue, and rising costs have led to price increases for items such as rice balls and lunch boxes, boosting sales rather than reflecting higher volumes or product expansion.

At the same time, data from Japan’s Statistics Bureau shows that, after adjusting for inflation, household spending on food has been declining. With wage growth failing to keep pace with rising prices, real wages have fallen for four consecutive years, leading consumers to become more cautious with spending and less attracted to relatively expensive convenience store options.

Consumer sentiment also reflects this divide. A Tokyo office worker said convenience store food has become noticeably more expensive, noting, “I now buy lunch at supermarkets instead because it’s cheaper.” However, another consumer in his 30s emphasized convenience, saying, “Even though prices are higher, it’s still convenient and always available, so I continue to use them.”

Meanwhile, supermarkets, discount retailers, and drugstores are increasingly expanding into the food market. By leveraging private-label products and low-price strategies, they are opening smaller urban stores and attracting customers away from convenience stores. Some have achieved sales comparable to major convenience store chains.

In response, convenience store operators are limited by their franchise business model, which makes direct price cuts difficult. Instead, they are focusing on digital coupons, loyalty point programs, and discounts on near-expiration items. As price sensitivity among consumers continues to rise, restoring customer traffic has become a key challenge for Japan’s convenience store industry.