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Economics of Japan's Retail Stores

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  • Kenn Ariga

Abstract

The retail store is the closest that we come into contact with "distribution" in our everyday lives. The retail store stocks all sorts of items through manufacturers or wholesalers, displays them in rows and, while providing product information, sells them to its customers. Except for the profit, which is about 2 percent of sales, the main part of the value added is expended on such services and activities. Combined with wholesalers located farther upstream, the distributors account for approximately 15 percent of the economy's GNP. Taking 1988 as an example, the total of that value added was about 50 trillion yen, the second largest sum after manufacturing (116 trillion yen)—with the economy divided into 10 industrial categories. This was larger than either the service (47 trillion yen) or construction (24 trillion yen) industries.

Suggested Citation

  • Kenn Ariga, 1995. "Economics of Japan's Retail Stores," Japanese Economy, Taylor & Francis Journals, vol. 23(1), pages 66-96.
    • Handle: RePEc:mes:jpneco:v:23:y:1995:i:1:p:66-96
    DOI: 10.2753/JES1097-203X230166
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    Cited by:

    1. Kenji, Matsui, 2011. "Resale price maintenance for supply chains distributing products with demand uncertainty," International Journal of Production Economics, Elsevier, vol. 134(2), pages 375-387, December.
    2. Matsui, Kenji, 2010. "Returns policy, new model introduction, and consumer welfare," International Journal of Production Economics, Elsevier, vol. 124(2), pages 299-309, April.

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