Economics
Convenience-Store Squeeze Shows Deflation Dilemma Facing BOJ
- Labor crunch, shrinking market drive investment in technology
- This frustrates Bank of Japan now but could fuel growth later
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Takanori Sakai works the graveyard shift four nights a week at the FamilyMart store he owns in Himeji, central Japan, because he can’t afford the higher pay employees demand these days.
"More and more stores can’t secure a profit," the 57-year-old said. Problem is, with competition just down the street, raising prices to cover higher wages risks turning off customers who’ve become accustomed to steady prices for a generation.