Introduction: Convenience Store-Sized Supermarkets Are Everywhere
If you walk through Tokyo, Yokohama, or Kawasaki these days, you'll frequently spot stores with the "My Basket" (まいばすけっと) sign. These compact stores, roughly the size of a convenience store but stocked like a supermarket with fresh produce and daily necessities, seem to be multiplying like amoebas across Japan's urban landscape.
This urban mini-supermarket chain operated by the Aeon Group has surpassed 1,290 stores as of late 2025, with sales reaching approximately 3 billion dollars. The company has announced ambitious plans to expand to 2,500 stores by 2030 and ultimately achieve a 5,000-store network.
Traditionally, the retail industry operated on the principle that "bigger stores win the competition." So why are small stores suddenly gaining such strong support? The answer lies in profound structural changes occurring in Japanese society.
Understanding "Small Trade Areas": How Aging Changes Shopping Habits
The retail industry has been buzzing about "small trade area" (小商圏化) trends. A trade area refers to the geographic range from which a store can attract customers, and this range has been steadily shrinking in Japan.
The primary driver is Japan's aging population. Elderly individuals tend to have reduced mobility and less motivation to go out compared to younger generations. As they stop driving or find it difficult to walk long distances carrying heavy groceries, traveling to distant large supermarkets becomes increasingly challenging.
Consequently, the trade areas of large supermarkets and shopping malls are contracting, while demand for small stores within walking distance from home is surging. My Basket employs a "dominant strategy" of opening multiple stores within 300-500 meters of each other, perfectly capturing this small trade area trend.
The Rise of Single-Person Households and "Buy Only What You Need" Culture
Japan's household structure is also undergoing dramatic transformation. According to the National Institute of Population and Social Security Research, single-person households comprised about 20% of all households in 1980, reached 38% by 2020, and are projected to exceed 44% by 2050.
Particularly noteworthy is the increase in elderly single-person households. Due to increasing rates of lifelong singlehood and spousal bereavement, single-person households aged 65 and over are expected to exceed 10 million by 2050.
For those living alone, bulk buying often leads to food waste, and refrigerator space is limited. Therefore, a "buy only what you need, when you need it" shopping style is becoming mainstream. My Basket offers an extensive selection of single-serving prepared foods and small-portion ingredients, perfectly matching this demand.
Cheaper Than Convenience Stores, Closer Than Large Supermarkets: The Perfect Position
My Basket has earned the nickname "convenience store killer" due to its price competitiveness. Centering on Aeon Group's private brand "Top Value," the chain achieves prices significantly lower than convenience stores.
For example, instant noodles that cost around 230 yen at convenience stores can be purchased for 130-140 yen in Top Value versions at My Basket. Rice balls cost around 117 yen including tax, compared to approximately 180 yen at convenience stores—a clear savings.
On the other hand, the stores lack the spacious floor area and extensive product selection of large supermarkets. However, for busy urban residents, the value of completing daily shopping within a few minutes' walk from home or work is immensely high.
Increasingly opening in ground-floor spaces of apartment buildings and low-rise commercial buildings, My Basket has become like a "refrigerator downstairs" for residents. This value proposition of "close, convenient, quick + affordable" brilliantly captures the needs of modern urban dwellers.
Directly-Operated Stores Enable Rapid Expansion and Quality Control
Another strength of My Basket is that all stores are directly operated by the company. While most convenience store chains rely on franchise systems, My Basket's headquarters directly manages every location.
This approach offers multiple advantages. First, without the need to recruit and train franchise owners, rapid store expansion becomes possible. Aeon's President Yoshida has stated that "employees can work at stores after just half a day of training," indicating highly standardized operations.
Additionally, there's no risk of competition between franchisees, allowing the company to control multiple nearby stores without conflict. Logistics efficiency improves, and inventory turnover rates increase.
Leveraging Closed Convenience Store Locations for Efficient Expansion
A crucial element of My Basket's expansion strategy is the active utilization of closed convenience store locations.
In recent years, the convenience store industry has faced rising labor costs and intensified competition, leading to numerous unprofitable store closures. My Basket rents these vacant properties as-is, significantly reducing store development costs. In an era of soaring construction material prices, this strategy of halving initial investment while expanding the store network proves highly rational.
Since stores are designed around floor spaces similar to convenience stores (approximately 130-260 square meters), the compatibility with as-is rentals is excellent.
Addressing the "Shopping Refugee" Problem
Japan faces growing social challenges related to "shopping refugees" and "food deserts." Particularly for urban elderly residents, obtaining daily groceries is becoming increasingly difficult.
Mini supermarkets like My Basket serve as a "last resort" for these shopping refugees. For elderly individuals who cannot easily reach large supermarkets, having access to fresh food and daily necessities near their homes is crucial for maintaining quality of life.
As government and local authorities explore shopping support measures, private sector expansion into small trade areas carries significant social value.
Future Outlook: Toward a 5,000-Store Network
Aeon positions My Basket as the centerpiece of its metropolitan area strategy. Combined with the delivery capabilities of their online grocery service "Green Beans," the company envisions meeting all needs of the population-growing metropolitan area.
From fiscal year 2026 onward, the company plans an annual opening pace of over 200 stores, with expansion areas extending from traditional bases in Tokyo's 23 wards, Yokohama, and Kawasaki to suburban areas of Chiba and Saitama prefectures.
Going forward, the company aims to improve profitability by increasing the Top Value product composition ratio, building a structure capable of handling high urban rent costs.
Conclusion: What About Your Country?
In Japan, social changes including aging population and increasing single-person households are transforming shopping from large stores to mini supermarkets. The values of "nearby," "affordable," and "buy only what you need" strongly resonate with today's consumers.
How are shopping styles changing in your country? What impact are aging populations and changing household structures having on retail? We'd love to hear about the situation in your country!
References
- https://news.yahoo.co.jp/articles/8b925379f6f4620373601768a1abdfd89f96011d
- https://toyokeizai.net/articles/-/877444
- https://diamond.jp/articles/-/377242
- https://www.ryutsuu.biz/store/r101611.html
- https://www.nikkei.com/article/DGXZQOUC239AR0T20C25A7000000/
- https://www.nli-research.co.jp/report/detail/id=78767
- https://md-next.jp/24818
Reactions in Japan
I just realized there are 3 My Basket stores around my place. It's cheaper than convenience stores and I can buy vegetables, which really helps as a single person living alone. Being able to stop by on my way home is the best.
I'm relieved that a My Basket opened near my mother's house. She's 80 and can't drive, so being able to shop within a 3-minute walk is truly a blessing. The selection is limited but enough for daily needs.
As someone living on just part-time job wages, My Basket's prices are a godsend. Rice balls are 117 yen, bento boxes start from 400 yen range—way better deals than buying the same things at convenience stores.
The sashimi at My Basket is honestly mediocre... Can't expect much since it's cheap, but better not to expect much from fresh fish. I mainly use it for vegetables and processed foods.
My Basket's expansion pace is insane. Almost all of our company's former convenience store locations are being taken over by them. Their strategy of using as-is properties to reduce initial investment while securing profit margins with Top Value products is brilliant.
[My Basket Tips] Aim for the discount stickers after 8 PM! 30% off prepared foods is the best value. People living alone should definitely check this out 🙌
I was so moved when My Basket opened on the first floor of my apartment building. Being able to shop right after getting off the elevator on my way home from work is absolutely amazing.
With too many My Baskets opening, local independent shops are struggling. They can't compete on price, and some elderly shop owners are considering closing. I have mixed feelings about this.
I couldn't go to big supermarkets anymore because of my leg problems, but thanks to My Basket, I can still shop by myself. The staff is kind too—I'm really grateful for this store.
How I divide between My Basket and convenience stores: Basics at My Basket. But for convenience store sweets, hot snacks, and ATM, I go to konbini. I think this division is the optimal solution.
It's hard to go to big supermarkets with kids, so I use My Basket for quick additional purchases. The registers aren't crowded and short stay time is a lifesaver.
My Basket has an especially good selection of Top Value products. The Best Price series is really cheap, and Green Eye has good quality too. I recommend using them according to your needs.
It's slightly inconvenient that My Basket doesn't accept PayPay and such. Do I have to get a WAON card... But other than that, no complaints.
The proliferation of My Basket symbolizes changes in Japan's urban structure. Aging population, increasing single-person households, more dual-income families. 'Close and convenient' will be the keyword for retail going forward.
What's great about My Basket is that it opens at 7 AM. There aren't many supermarkets where I can shop after night shifts, so I really appreciate it.
We have similar mini supermarkets in Singapore too! Our aging population isn't as advanced as Japan's, but since we have many dual-income households, the 'close and convenient' concept is similarly popular here. But prices might not be as cheap as My Basket.
In the UK, Tesco Express and Sainsbury's Local occupy a similar position. But we don't have as many stores as Japan, and the fresh food selection isn't as comprehensive. The efficiency of Japan's mini supermarkets is truly impressive.
In Germany, discount stores like Aldi and Lidl are more mainstream than mini supermarkets. Even elderly people often drive to suburban stores. I'm envious of Japan's culture where shopping can be completed within walking distance.
As an American, what surprises me is that Japan has infrastructure where you can live without a car. Here, if you live in the suburbs, driving 20 minutes to a big supermarket is normal. It's really tough when elderly people can't drive anymore.
Korea has similar mini supermarkets, but convenience stores (CU, GS25) are overwhelmingly dominant. A format like My Basket that's cheaper than convenience stores with supermarket-level selection is rare. It might succeed in Korea too?
In France, we've always had small grocery stores (épiceries), but they're not major chains. It's difficult to achieve low prices while scaling efficiently like Japan. Carrefour City might be the closest, though.
In China, new retail like Hema Fresh is popular. There's even services where you can order by smartphone and get delivery in 30 minutes. But Japan's 'within walking distance' concept for elderly people might become necessary as China ages.
In Poland, a convenience store chain called Żabka is growing rapidly. But we don't have mini supermarkets focused on fresh food like My Basket yet. Japan's business model could be a good reference.
In Spain, elderly people often live with family, so there aren't as many single elderly households as in Japan. But things are changing recently, and we might need mini supermarkets like Japan's in the future.
Netherlands has a developed cycling culture, and even elderly people often bike to large supermarkets. But when you get really old, it becomes difficult. Japan's within-walking-distance shopping makes sense.
Australia is a car society, so the concept of walking-distance supermarkets like Japan doesn't really exist here. But there might be demand among young apartment dwellers in urban areas. Japan's success story is fascinating.
In Brazil, due to security concerns, it's difficult to have small stores operating late at night. Japan's safety is what makes this business model viable. I'm envious.
In Canada, winters are harsh, so it's not realistic for elderly people to walk to shops in many areas. I think this business model works because Japan has a milder climate and developed public transportation.
In India, Kirana stores (independent shops) exist in every neighborhood and play a similar role to My Basket. But since they're not chain stores, quality and prices vary. Japan's standardized system is a good reference.
Switzerland has high prices, so a low-price approach like My Basket would be hard to sustain. But aging is progressing here too, so just the 'close and convenient' concept alone would be worth adopting.