Business
Japan’s fussy food shoppers finally go online amid pandemic
TOKYO (Reuters) – The coronavirus has forced Japan’s notoriously fussy food shoppers to abandon doubts about online grocery stores, sending retailers such as Aeon Co (8267.T) scrambling to meet a surge in delivery demand.
Although Japanese shoppers aren’t alone in going online during the outbreak, the shift is remarkable for a country that had been expected to take years to embrace online food shopping because of a zeal for fresh and perfectly presented produce.
“I think that this pandemic has triggered an inflection point in the adoption of grocery e-commerce,” said Luke Jensen, executive director of Ocado Group (OCDO.L), hired to build a grocery e-commerce business for Japanese retail giant Aeon.
Most companies won’t disclose numbers, but retail executives and analysts estimate internet sales now account for about 5% or more of Japan’s total grocery sales, compared with 2.5% before the pandemic.
Although that is still lower than some pre-crisis estimates of 15% in China and even 7% in broadband laggard Britain, it challenges a long-held belief that Japanese shoppers will always on shopping daily and in person, checking the goods first-hand.
Yuri Ohtaka, a graphic designer living in Tokyo’s western suburbs, began ordering from multiple online supermarkets in March after seeing shoppers emptying shelves at a nearby store.
Although fears of shortages have subsided, online deliveries have made it easier as she works from home, making three meals a day for her family, including her 3-year-old son. She’s also happy to avoid stores amid fears of infections.
“There’s no need for face-to-face, dealing with registers, or standing in line,” she said, adding that she’s also persuaded her parents to go online. “They were shopping every day in the supermarket, and I really didn’t want them to.”
As more households have two people working, analysts say, people want to spend less time shopping. But they still have exacting standards for service and produce quality, which have perplexed previous foreign entrants such as Carrefour (CARR.PA) and Tesco (TSCO.L).
Such changes are closely watched as Japan is one of the world’s most valuable grocery markets, worth over 50 trillion yen ($466.42 billion) a year. Per capita, only countries such as Switzerland, Norway and Israel spend more on food.
Sudden demand
Major Japanese supermarkets, despite talking about online services for years, have only recently begun large-scale spending on e-commerce infrastructure.
Most have struggled to meet the spike in demand, and would-be-shoppers on Twitter have complained of difficulty securing delivery slots throughout the crisis.
Aeon hired British online grocery pioneer Ocado in November to build state-of-the-art robotic warehouses, aiming to fend off rivals such as Amazon (AMZN.O), Seven & i Holdings’ (3382.T) Ito-Yokado and a venture between Walmart-owned (WMT.N) Seiyu and e-commerce giant Rakuten Inc (4755.T).
But the first of those warehouses won’t start operating until 2023. In the meantime, Aeon said it is hiring more staff to help pack online grocery orders, although it is having difficulty hiring more delivery drivers.
Despite such constraints, Aeon expects online grocery sales to grow 50 percent and account for about 10 percent of sales by the end of its financial year ending next February, according to company executives.
That is not an official target unveiled to investors, but the company confirmed President Akio Yoshida, who was appointed to the top job in March, set it as a goal.
Executives expect the shift to last.
“When people increase their use of online, they stay with it rather than going back. In Japan we’d expect there to be a step up in the growth of e-commerce,” said Ocado’s Jensen, who is also chief executive of the group’s Ocado Solutions technology business.
Smart warehouses vs. Mom and pop
Analysts say the shift is also likely to favour bigger retailers who can invest in high-tech warehouses capable of handling large volumes rather than just having store staff pick items from retail shelves and package them for delivery.
That could put smaller supermarkets and mom-and-pop stores, already struggling to match the likes of Aeon and Ito-Yokado in pricing, at a further disadvantage.
But Violetta Volovich, who has researched global grocery industry trends for e-commerce consultancy Edge by Ascential, said remote and costly high-tech fulfilment centres were not the answer for all retailers.
Instead, she envisions many retailers adopting automating more jobs in existing brick-and-mortar stores and embracing features such as “click and collect”, in which shoppers pick up online purchases at the stores.
She also said the rise in food e-commerce didn’t mean an end to traditional grocery shopping.
“Just because people get pizza delivery doesn’t mean they will stop going to pizza restaurants,” she said.
($1 = 107.2000 yen)
Reporting and photo: Reuters
Business
Barcelo Nasandhura Malé to open in Q1 2025
Barcelo Nasandhura Malé, the Maldives’ newest luxury destination, is set to open its doors in Q1 2025.
Located on the site of the former Nasandhura Palace Hotel, the property will become the largest hotel in the capital, Malé. With 136 elegantly designed rooms, including 95 with stunning ocean views, and 116 luxurious serviced apartments, Barcelo Nasandhura Malé promises a unique blend of sophistication, comfort, and convenience in the heart of this vibrant city.
Operated by the renowned Spanish hotel chain Barcelo Group, the hotel represents a significant expansion of the brand’s presence in the Maldives and beyond. Barcelo Group, known for its exceptional resorts, recently opened Barcelo Whale Lagoon Maldives in South Ari Atoll in August 2024, further solidifying its growing portfolio in the region. In addition to its Maldivian properties, Barcelo Group manages a range of high-profile hotels across the UAE, Thailand, and several European countries.
Barcelo Nasandhura Malé will feature an array of premium facilities, including four upscale dining outlets, a rooftop shisha bar, an oceanfront pool, a state-of-the-art gym, and a luxurious spa. The hotel will also boast 1,034 square meters of versatile MICE (Meetings, Incentives, Conferences, and Exhibitions) space, making it an ideal venue for corporate events and gatherings.
While some serviced apartments were initially intended for residential use, they will now be available for daily rental, offering guests enhanced flexibility and a wider range of accommodation options. Originally scheduled to open on December 1, 2024, the opening has been slightly delayed due to minor construction work. However, the team remains committed to ensuring Barcelo Nasandhura Malé is ready to welcome its first guests in Q1 2025.
Barcelo Hotel Group, awarded World’s Leading Hotel Management Company 2023 by the World Travel Awards, is the second-largest hotel chain in Spain and ranks among the 30 largest globally in terms of the number of rooms. Founded in 1931, this family-run organisation operates 280 four- and five-star city and holiday hotels, offering more than 62,000 rooms across 25 countries. The group markets its hotels under four distinct brands, each focused on providing diverse and memorable travel experiences.
Renowned for its commitment to excellence and sustainability, Barcelo Hotel Group delivers exceptional stays, seamlessly blending luxury, comfort, and environmental responsibility.
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Denise Hoefer brings world-class Padel to The Nautilus Maldives
As part of its ‘Masters for Masters’ series, The Nautilus Maldives will host Denise Hoefer, Germany’s No. 1 padel player and one of the world’s top 50 most influential figures in the padel industry, for an exclusive Padel Masterclass from March 22 to 25, 2025. This exceptional event invites guests to enhance their padel skills under the expert guidance of a global champion, all set against the stunning backdrop of the Maldives’ Indian Ocean.
Padel, recognised as the world’s fastest-growing sport, has captured the hearts of 30 million enthusiasts globally, according to the International Padel Federation. This March, The Nautilus will provide a unique opportunity for guests to immerse themselves in this thrilling game during a four-day Padel Masterclass led by Denise Hoefer, Germany’s top-ranked female padel player and captain of the German national team. Participants will refine their techniques on The Nautilus’s state-of-the-art padel court, while experiencing the island’s signature blend of world-class coaching and timeless, unscripted hospitality.
The Padel Masterclass will feature a tailored mix of group and private sessions, catering to players of all levels. Younger participants will have the chance to join the Young Wonderers program, offering specially designed classes that introduce the sport in a fun and engaging way. After an energising day on the court, guests can unwind at Solasta Spa, where exclusive treatments by Maison Caulières—such as Spinal Connection Deep Tissue Healing, Volcanic Stone Therapy, and Warm Poultices—promise ultimate relaxation and rejuvenation. These tranquil spa experiences provide a perfect complement to the day’s dynamic activities, leaving participants refreshed and revitalised.
With just 26 ultra-luxury houses and residences, The Nautilus offers an intimate sanctuary within the Baa Atoll, a UNESCO Biosphere Reserve. Surrounded by powder-soft white sands, vibrant coral reefs, and crystal-clear waters, this private island retreat redefines bespoke hospitality. Every element is meticulously crafted to inspire, offering guests an unparalleled ultra-luxury experience focused on relaxation, renewal, and discovery. Whether honing padel skills or embracing the serenity of island life, The Nautilus stands as the ultimate destination for discerning travellers.
Business
BBM, Lifebuoy empowers hygiene practices among Maldivian children
BBM, in collaboration with Lifebuoy, marked Global Handwashing Day 2024 with engaging activities aimed at instilling the habit of proper hand hygiene among Maldivian school children. Held on November 17th, the event continued the successful “H for Handwashing” campaign, blending education with creativity and fun.
The initiative featured info sessions, exciting games, and creative contests designed to teach children the importance of handwashing while giving them a hands-on understanding of the correct techniques. Activities ranged from reimagined board games like “Germs & Ladders” and “Handwashing Ludo” to interactive sessions that reinforced hygiene habits in an enjoyable way.
This campaign underscores BBM’s commitment to fostering healthier practices among the younger generation, contributing to a healthier and more hygienic Maldives. COO of BBM, A.V.S. Subrahmanyam, emphasised, “At BBM, we believe that empowering the next generation with the knowledge and tools for better hygiene practices is vital for building a resilient and healthy community. We are proud to continue our efforts in collaboration with partners like Lifebuoy.”
Adding to this, Muksith Hussain, Head of Retail Sales at BBM, shared, “Reaching children through such innovative initiatives helps us lay the foundation for a healthier tomorrow. We are thrilled to see the enthusiasm and participation of these young minds in learning the importance of hygiene.”
The event also saw valuable support from the Maldivian Red Crescent (MRC), whose contributions enriched the experience for the children. BBM expressed gratitude for MRC’s involvement, as their efforts played a key role in making the event impactful and memorable.
Through campaigns like this, BBM aims to nurture a lifelong habit of handwashing, creating a brighter and healthier future for the Maldives.
Let’s keep the spirit alive—join the Handwashing Revolution with BBM and Lifebuoy!
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