Methods and Mindsets Change with the Times
Good morning.
I thought the days when buyers would request that suppliers handle display and stocking for new store openings were a thing of the past, but it seems there are still remnants of that practice, which has now become an issue.
The supermarket chain Lopia (Kawasaki City) has been investigated by the Japan Fair Trade Commission (JFTC) on suspicion of violating the Antimonopoly Act (abuse of superior bargaining position) for having employees of its suppliers work at its stores without compensation. The JFTC announced on the 25th that it has approved the company's plan for improvement and prevention of recurrence.
Under the "commitment procedure" based on the Antimonopoly Act, no violation will be formally determined.
Over a period of about two years and ten months, Lopia had over 10,000 people dispatched from about 400 suppliers to more than 100 stores in total, without covering any of the labor, transportation, or accommodation costs, which amounted to approximately 433 million yen. The company plans to pay the full amount.
According to the JFTC, from at least September 2022 to around June 2025, Lopia had supplier employees dispatched without pay to handle product displays for new store openings and to stock sale items.
There were also cases where employees were assigned to handle products from other companies, or where suppliers utilized temporary staffing agencies to fulfill the requests.
During this period, Lopia and its group companies increased their number of supermarkets by 55, operating 121 stores nationwide as of the end of June 2025.
Suppliers were highly dependent on the rapidly growing Lopia for their business, and it was reportedly difficult for them to secure equivalent sales through transactions with other companies.
The dispatch requests were made by buyers who had discretion over shelf allocation and other matters.
In addition to making direct requests to suppliers who had not agreed to such terms, they also asked major food wholesalers and manufacturers to cooperate by gathering employees from their own business partners for dispatch.
In all cases, it was reportedly difficult in practice for the suppliers to refuse these requests, given Lopia's strong position.
Under the commitment procedure, Lopia will cease these practices and have an external lawyer monitor the implementation of its refund and prevention plans for the next five years, reporting regularly to the JFTC.
Even so, it seems that opening a store costs around 400 million yen.
Wow, that is an incredible amount of money.💦
I suppose that just goes to show how much effort goes into an opening.
I remember that in the past, it was common to call in manufacturers and vendors to help with displays, but it is considered an abuse of superior bargaining position now, and having them dispatched without compensation was likely the problem.
Nearly 400 million yen in expenses were effectively saved, so if that was meant to be recovered through sales, it would have had a significant impact.
In this day and age, it can also become a matter of corporate branding and credibility, so extreme caution is required when dealing with business partners.
It seems that transparency and fairness are what matter most.
It just goes to show that times change without us even realizing it.