Japanese supermarket chains and labour costs-part 2: A comparison with french variety stores, supermarkets and hypermarkets

Japan is often alleged to have an outdated and ineffecient retail system. Detailed studies are needed to udnerpin these allegations. In this paper we do this for the retail sector of supermarkets. We study of 18 Japanese supermarket chain store corporations. Characteristics of Japanese supermarkets are given in an historic overview. A labour cost relationship is estimated with data of 918 establishments. This relationship has already been established, tested and confirmed in many studyes on European retailing. In part 1, we showed the Japanese chain store corporations diversify in assortment composition as well as in the service level. In part 2, labour costs of Japanese supermarkets are studied in more detail. We find statistical support for higher labour costs by more use of part-time employees, higher service level and village based store. Futhermore, we compare labour costs of Japanese supermarkets with labour costs of French variety stores, supermarkets and hypermarkets. We find no differences in labour costs between Japan and France.