In a Tokyo supermarket, signs of struggle for Japanese business

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‘You would think it was ok to raise the price of your products when your costs and other expenses have gone up, but when I look my customers in the eye, I can't do it:’ A supermarket owner in Japan tells how he is struggling to keep up with wage demands

"We supermarkets are the leading edge of life," Akiba said. "If the economy is tough everybody cuts back on spending. They're defending their lifestyle by buying cheaply."

He would love to raise wages for the 40 workers in his flagship store the way larger places can. The operator of clothing giant Uniqlo plans raises of up to 40%, and more than half of big firms in a"I think all those places must have much cheaper costs. That gave them enough leeway that they could pass that on to their workers," he said.

Employee Taro Yamada, a 19-year-old university student, said a rise in his 1,200 yen hourly pay would be welcome, enabling him to eat a more balanced and healthy diet.Yoko Yamada, a 52-year-old composer with a shopping basket on her arm, said she now buys things like meat in bulk and freezes it to save money. No raise is in sight for her partner, the main breadwinner.

"The government needs to enact policies to keep things in balance," she said. "Otherwise, poverty will really increase in Japan."

 

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If your business must rely on paying workers too little to live on, then it is too weak to exist. The economy works best when everyone can afford to spend.

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