AEON's 12-Dollar Stores Cut Prices for First Time in 15 Years, Close Four Outlets
AM730 · 1 SOURCESabout 3 hours ago2 MIN
Summary
AEON Hong Kong's Living Plaza and Daiso Japan chains announced their first price reduction in nearly 15 years, effective Saturday, August 1 . Items originally priced at 200 yen or above will see price cuts ranging from HK$5 to HK$20, though most products will still be priced at roughly 9 to 10 times the yen value . Unlabeled items will remain at the familiar HK$12 price point, while 150-yen goods stay at HK$20 . The pricing adjustment comes as the retailer faces continued financial pressure, with four store closures planned for this year .
Key Points
- Living Plaza and Daiso Japan will cut prices on 200-yen-and-above items by HK$5 to HK$20 from August 1, the first reduction since the 2011 price hike from HK$10 to HK$12 .
- Unlabeled products maintain the HK$12 price, while 150-yen items remain at HK$20, preserving the entry-level affordability .
- Despite reductions, most adjusted prices still represent 9 to 10 times the yen value, with some 250-yen items remaining at 12 times the yen rate .
- Four stores will close in 2020: Daiso Tuen Mun Siu Hei on July 2, Daiso Kwai Chung Shek Lei on July 12, Living Plaza Hang Hau on March 8, and Living Plaza Tsuen Wan Belvedere on August 2 .
- AEON reported a narrowed net loss of HK$320 million for the previous year, with revenue declining 3.7 percent to HK$7.8 billion and gross margin falling to 28.4 percent .
Why It Matters
The price cuts and store closures signal intensifying competition in Hong Kong's budget retail sector, where consumers have grown accustomed to fixed-price value shopping . AEON's pivot toward new store formats like "Mono Mono" suggests traditional discount retail models are becoming unsustainable even for established Japanese chains .
The price cuts and store closures signal intensifying competition in Hong Kong's budget retail sector, where consumers have grown accustomed to fixed-price value shopping . AEON's pivot toward new store formats like "Mono Mono" suggests traditional discount retail models are becoming unsustainable even for established Japanese chains .