Japanese retailer Aeon has published its annual results, posting an operating profit increasing by 4% to JPY184.7bn (US$1.7 bn), but falling -2.79% short of the company's estimate of JPY190bn (US$1.75 bn)
Price cuts announced, but improved sales expected
Japan has tried to escape the effects of deflation for almost two decades, with the impact often moving in line with home and international policies. This has underpinned a sense of uncertainty for many households and notoriously caused weak consumer spending. The balance between cost and value is at the forefront of many shoppers' minds.
Private label products aiding growth
Aeon's results showed that private label products performed strongly, but new price cuts have been announced for over 250 products, ranging from food to daily household items to attract shoppers. Despite a lower than expected annual operating profit, the retailer has a positive outlook, and believes its decisive action will lead to strong results for the rest of the year.