Ito-Yokado owner pursuing lower prices to attract inflation-hit shoppers, CEO says

Supermarket and retail group York Holdings is introducing lower-cost products to draw in shoppers affected by inflation, according to its CEO Seiichiro Itabashi. After being acquired by Bain Capital, the company behind Ito-Yokado and York-Benimaru supermarket chains is modifying its product range and pricing to stay competitive.

Household budgets are being strained and discount supermarket chains are putting pressure on the industry, leading to a change in strategy, Itabashi stated. Many customer groups are highly price-sensitive; failing to adjust prices for inflation could result in losing customers. Targeting 400 low-cost branded items by the end of 2026, York Holdings plans to offer these products at potentially different prices in its supermarkets compared to Seven & i's 7-Eleven convenience stores.

Itabashi explained that Seven & i's private-label offerings focused too heavily on convenience stores, leaving limited budget-tier products in its supermarkets. Bain Capital is advising York on pricing, leveraging its experience in retail acquisitions like Skylark and Kirindo Holdings. York Holdings, which also includes Loft and Akachan Honpo, aims to broaden its customer base and overcome its premium image.

Currently, Seven & i holds a 35% stake in York, with company-branded products priced the same in both. York has no plans to sell its non-supermarket stakes and may consider acquisitions to grow its core businesses. The top 10 supermarket players control about 20% of the market, and to survive, they'll need to capture about half.