Inflation-squeezed Japanese flock to claw machines dangling everyday items

As Japanese families grapple with high inflation, an unusual solution is emerging: huge arcades on the outskirts of cities offering claw machines filled with everyday essentials. These "shop-and-play destinations" allow parents to bring home necessities while still enjoying a fun outing. Minae Kamata, a 25-year-old housewife, won a pack of toilet paper after just two attempts at a claw machine for just 100 yen (US$0.64) per try.

Experts say the trend reflects Japan's prolonged wave of inflation, with prices outpacing wage growth for years. Retailers are now trying to make purchasing fun to encourage buying and ease any guilt associated with it. Claw machines have been popular in Japan before the inflation wave, with the prize game market more than doubling in 10 years to reach 417.7 billion yen (US$2.7 billion) in 2024.

In Kawasaki, a venue operated by Benex chain has hundreds of machines filled with bottles of soda, bags of sweets, and detergent. Executives say families are choosing these cost-effective entertainment options due to inflation. Benex has scrapped video games and token machines, focusing on claw machines, which have increased revenue 2.6-fold in two years.

Large retailers are also jumping on the trend, with Aeon Fantasy opening areas dedicated to food and household prizes targeting mothers. As consumers become more sensitive to costs, retailers hope these initiatives will attract and retain customers.