Posts Tagged ‘home centers’

Home centers forcing JA to improve its game for farmers

Monday, September 10th, 2012

Komeri outlet in Sakae Town, Chiba Prefecture

The Central Union of Agricultural Cooperatives, more commonly known by the acronym JA (for Japan Agriculture), or the Japanese abbreviation Nokyo, has, in one form or another, controlled the finances and structure of the country’s farm sector since the early 1950s. That means not only does JA help keep prices high so that farmers can make a living, but provides farm families with everything they need to make that living, from loans to sales of equipment, supplies and fertilizer. It even sells insurance and does banking, under an exception granted by the central government. As with any semi-public organization that has a given field to itself, JA’s operations have become sclerotic over the years. In 2008, the agricultural ministry conducted a survey of farmers. When asked where they bought their fertilizer, 70 percent answered “JA,” but 80 percent of these farmers also answered that they were “dissatisfied” with the cooperative’s prices.

JA is famous for using a lot of middlemen in their sales channels, which invariably drives up the prices of everything they sell. In addition, various handling fees and distribution costs make the prices even higher. In a recent Asahi Shimbun article a professor at the Tokyo University of Agriculture said that with the recession and the possibility of more imports coming into the Japanese market, farmers have become extra sensitive about costs and as a result are beginning to wonder if JA is really looking after their interests properly. Some have already started leaving the cooperative.

But where to go? According to the agricultural ministry survey, only 2.5 percent of farmers were buying their fertilizer from so-called home centers in 2008, but that portion has likely gone up considerably since then. Home centers, called home improvement centers in the U.S., are large retail outlets that sell everything for the home, but mainly supplies that homeowners need for things like repairs or renovations, as well as gardening and landscaping. The Japan DIY (Do-It-Yourself) Association reports that there were 4,310 home centers in Japan in 2011, double the number that existed in 1990. The home center chain with the most outlets is Komeri, who own more than a thousand. And while home center sales have mostly been stagnant since 2005 owing to the growth of other retail models, mainly drug stores, Komeri is also growing. The chain says it plans to double its present number of stores in 10 years’ time.

Continue reading about home center Komeri →

Joyful Honda and the rise of the car-centric ‘home center’

Friday, June 24th, 2011

What a gas: Joyful Honda in Inzai

People living in Tokyo, especially those who don’t own cars, can often be oblivious to the priorities of people living outside of Tokyo. So-called home centers have become a central facet of suburban people’s lives, and while you can find a few within the borders of the capital, the metro ones are by necessity much smaller. The whole point of a home center, which contains jumbo-sized retail sections dedicated to everything necessary for everyday living, from food to furniture to tools, is that you drive your car to it. A huge parking lot is part of the bargain, literally and figuratively.

One of the most successful home centers is Joyful Honda, which has no relation to Honda Motors, though it is conspicuously friendly to car culture. The company operates 15 outlets, the biggest of which is located in Hitachi, Ibaraki Prefecture, which is also the corporate headquarters. The Joyful Honda retail property in Hitachi covers, in the prosaic parlance of Japanese developers, the equivalent of 4.8 Tokyo Domes. Most of this real estate is taken up by parking lots, which can hold up to 6,800 vehicles. In land-scarce Japan, this is a huge investment and points to a sea change in the Japanese retail mindset. Traditionally, retail centers were built around train stations, even in suburban and rural areas. However, outside of large urban centers, retail complexes have become isolated, self-contained, destinations for motorists. Shoppers have to have parking; more importantly, free parking. At Joyful Honda, you don’t even have to have your parking validated the way you would at a store in Tokyo. The prices rival those you will find at the cheapest discount retailers, which means the cost of the parking fields they control (Inzai, Chiba Prefecture: 5,000 cars; Ota, Gunma Prefecture: 5,700 cars; Mizuo-cho, Tama: 3,200 cars) are somehow absorbed.

Continue reading about suburban home centers →

RSS

Recent posts

Our Users Say

  • Troy: clowns. the country is run by clowns. quadrillions of yen of land value going undertaxed, and they monkey with...
  • gg: From my recent trip to the Pension office, I recall hearing that there were some rule changes expected soon that...
  • lisa warne: nice informative blog…
  • Troy: hmm, looking at the numbers, maybe youth care isn’t such a demographically doomed sector. The ratio of...
  • Troy: “will earn her a license to teach nursery school” ouch, not a demographically wise career choice ....
Japan Times RSS Feed

RECENT JAPAN TIMES HEADLINES

  • No items