Japanese retailers are tightening operations to manage rising fuel and electricity costs, even as the government works to secure energy supplies, Nikkei reported Thursday.
Itochu (TYO:8001) unit FamilyMart is weighing a reduction in store deliveries to cut transport expenses, while Lawson plans a gradual shift to hybrid and electric vehicles. Both chains are also investing in energy-efficient equipment to limit cost pressures, according to the report.
Aeon (TYO:8267) is bringing forward investments in solar panels and efficient air-conditioning, and accelerating a transition to lower-power refrigeration systems across stores, the report said.
The moves come as utilities prepare to pass on higher fuel costs to electricity bills from June, alongside seasonal demand for cooling. Government fuel subsidies have offered some relief, but their duration remains uncertain, according to the report.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)