Beisia Opens First Discount Store “Kokotoku” on June 12

Beisia, a major supermarket operator in Japan, opened its first discount store on June 12 in Saitama Prefecture. The new “Geki-Yasu Wonderland Kokotoku” format cuts prices 10-20% below standard Beisia stores by simplifying operations and eliminating services. The company plans to expand to 5 stores within 2 years as Japanese consumers face sustained food price inflation.

How Beisia Cuts Costs to Lower Prices

The Kokotoku store strips away services to reduce expenses. Beverages and beer sit at room temperature on pallets instead of refrigerated shelves, cutting electricity costs. The company eliminated loyalty points and home delivery. Products arrive in cardboard boxes and display on transport pallets, reducing staff labor. These operational changes let Beisia offer eggs at 97 yen, rice at under 2000 yen for 5kg, and 1kg bento boxes at 633 yen.

Aggressive Pricing Targets New Customers

The Kokotoku store carries 8500 product lines, roughly half the selection of standard Beisia locations. About 1000 items are private-label products, which the company prices 10-20% below comparable national brands. Beisia accepts credit cards and digital payments instead of its loyalty card, aiming to attract customers who avoid traditional discount stores. The company targets 1.5 to 2 times higher customer traffic than the previous store at this location.

Expansion Plans and Market Strategy

Beisia identified 5 candidate locations in northern Saitama and nearby regions for conversion to the Kokotoku format. The company will assess the flagship store’s performance before committing to additional openings. CEO Aiki Takahito stated that persistent food cost inflation has made shopping less enjoyable for consumers, driving demand for dramatic price cuts combined with quality and variety. The new format represents Beisia’s shift toward multi-format retail to capture diverse customer segments.

Industry-Wide Discount Store Boom

Beisia’s move reflects broader supermarket competition in Japan. Don Quijote launched its discount food brand “Robin Hood” with onigiri at 85 yen and bento boxes under 300 yen. Belc opened “Kurube” and Mamie Mart expanded “Mamie Plus” with 215 yen bento boxes. All chains cite persistent inflation and shrinking customer traffic at traditional stores as drivers for the new discount formats.

Final Thoughts

Beisia’s Kokotoku store signals a structural shift in Japanese retail toward aggressive discounting. With 1.5-2x traffic targets and plans for 5 stores in 2 years, the format addresses sustained food inflation. Success here will determine whether Beisia can compete with established discount chains.

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