Do you feel that the prices of things are getting higher these days?
As a college student living alone, even a slight increase in price can be a big blow to you.... . w
This article describes the trend of Japan's top companies, but it seems that few companies can hold on to the status quo....
On March 14 of this year, McDonald's Holdings Japan raised the retail price (including tax) of some items by 10 to 20 yen. In April, the month following the price increase, the number of customers at existing stores increased 3.9% y/y, and in May it increased 4.8% y/y, with no negative impact. The number of customers per customer was also up 7.1% y/y in April, and up 0.3% y/y in May.
The situation is similar for the major beef bowl chains. Yoshinoya Holdings Co. raised the price of its Yoshinoya beef bowl from 387 yen to 426 yen, including tax, last October. Even so, since the following month, same-store sales have been growing steadily, increasing 8.7%, 7.4%, 4.0%, 6.1%, 11.9%, 11.6%, and 9.8% y-o-y, respectively.
Sukiya, which is operated by Zensho Holdings, also raised the price of its beef bowl from 350 yen to 400 yen including tax last December, but since the following January, comparable store sales have increased 10.9%, 11.4%, 11.4%, 8.3%, and 6.3% y/y.
At a new product exhibition in June, Fast Retailing revealed that it will raise the prices of some of its standard clothing items for this year's fall/winter UNIQLO lineup. The number of items to be affected has not been determined, but all major items will see a ¥1,000 increase in price, including tax, from the previous ¥1990 to ¥2,990 for fleece and from ¥5,990 to ¥6,990 for down jackets.
UNIQLO had previously raised prices for two consecutive years in the fall/winter seasons of 2014 and 2015 due to the weak yen and high raw material prices. profits declined by more than 10%.
It is surprising to see that even though the above companies have raised prices, customers have not been deterred; in fact, they have increased.
To begin with, the trend toward a weaker yen is a mechanism whereby the yen is exchanged for dollars and the relative value of the yen declines because many people compare the Japanese yen to the US dollar and feel that US policy has a better future than that of Japan.
The BOJ's policies over the last 30 years have been
No interest rate hikes.
The policy of the last 30 years was wrong now. How can you say...
In the U.S., interest rate hikes have led to inflation and rising prices and incomes, but Japan is not likely to be able to do so at this point in time.
The reason lies in the policies of the BOJ over the past 9 years.
The first step is to implement a "quantitative and qualitative easing policy.
Simply put, the BOJ will buy up stocks and bonds to increase the amount of money in circulation! This is the strategy. However, even with this strategy, prices will not rise.
The second step is to implement a "negative interest rate policy. You may be familiar with this term.
In short, if we keep money in the bank all the time, it will decrease, so let's put it back into the world! This is a strategy. However, this strategy did not work either.
Finally, "yield curve control" is a long-term interest rate policy.
It stabilizes the interest rate on government bonds for 10 years. .... The same applies below.
All three policies were designed to encourage the circulation of money, but so far they have not been successful.
So from the perspective of those who have assets, Japan is not that attractive.
This situation in itself is not necessarily bad, but it is clear that it will go from bad to worse if people's incomes do not rise because they cannot afford to buy things.
Japan is not self-sufficient in both food and energy, and we must quickly realize the danger of our dependence on other countries.