サンエー, a regional supermarket in Yamagata, has ceased operations, and bankruptcies among local supermarkets are increasing. Amid the triple whammy of intensifying competition, rising prices and labour shortages, survival strategies are shifting towards M&A.
The operating environment for local supermarkets has become increasingly challenging, and サンエー, a regional supermarket in Yamagata Prefecture, ceased operations on 1 September. The company opened in 1989, and sales reached approximately ¥2.99 billion in the fiscal year ending 2005, but declined as a result of new competitors opening stores and the closure of unprofitable outlets. By the fiscal year ending May 2026, sales had fallen to approximately ¥630 million and liabilities had reached approximately ¥1.105 billion.
According to TSR statistics, there were 22 bankruptcies among local supermarkets from January to November 2025, up 46.6% from the same period a year earlier. This was close to the highest level since the COVID-19 pandemic, with approximately 86.3% of failed companies citing poor sales as the cause. They are being directly affected by intensifying competition from major retailers and convenience stores.
The difficulties facing local supermarkets are described as a triple whammy, with intensifying competition, rising prices and labour shortages cited as the three factors. Gross profit margins are declining because of the burden of special sales and price cuts, while profits are being constrained by the inability to fully pass on higher costs. Bankruptcies caused by rising prices reached 556 in the first half of 2026, a record high.
Against this backdrop, M&A has become an established means of survival. Companies such as 北海道のアークス, イズミ and バローホールディングス have brought regional supermarkets under their umbrellas, while the pool of buyers has expanded to a diverse range of companies, including drugstore operators. Going forward, post-acquisition integration and utilisation are expected to become the core of growth strategies.