Trade deal brings cheaper U.S. oranges to Japanese supermarkets
Japanese supermarkets have cut prices on U.S. food items such as oranges, according to The Japan Times. This follows the U.S.-Japan trade deal going into effect on the first of this month.
On Wednesday, major grocer Ito-Yokado Co. launched a massive six-day sale. 130 stores lowered the prices on nine items from the U.S., including a price cut of 10% to 20% on U.S. oranges.
Another retailer, Aeon, plans on cutting prices for U.S. beef and kiwifruit.
Seijo Ishii Co. also wants to take advantage of lower prices. It will have a sale on wine and nuts from the U.S. next week.
While the supermarkets look to make gains off of the trade deal, they're afraid of a potential price war.
“We don’t want to enter into price wars,” a senior official of a supermarket operator told the publication. As an executive with some 100 outlets in the eastern areas of the Kanto region, the man noted that U.S. beef profit margins are already low. Steak and beef from the U.S. are made even more accessible to consumers with the new agreement.
So, grocers are on the lookout for making the most of using the change to leverage their brands, but are cautious of reducing prices too much.
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