KOBE--One day in late June, a female customer who lived nearby shopped at the Co-op Mini Tsukigaoka located about 15 kilometers northwest of central Kobe.

She said she at times photographs a posted diagram showing the store's monthly sales and sales goal with her smartphone.

“I post this in a group chat to urge locals to buy more through the Line” messaging app, explained the woman.

Alarmed by the growing possibility of the sole supermarket in the area closing if the sales drop, consumers on the outskirts of Kobe are rethinking their shopping habits to combat the rapidly declining population.

As part of its strategy, Co-op Mini Tsukigaoka, the only supermarket in the Tsukigaoka district, neatly lined with homes, displays a sales graph on a sheet of paper.

The sales results put up for one year and three months do not aim to motivate store clerks but to appeal more to shoppers.

The graph is exhibited around a grocery bagging table to present the store’s daily receipts that range from 400,000 yen ($2,659) to 600,000 yen.

Included on the poster are the daily target, the number of days the goal was met each month, and other figures. They appear to be indicating  “purchase quotas” for patrons.

At the end of the notice was the phrase: “We appreciate your cooperation so our store can continue our business permanently.”

Tsukigaoka was developed as a new town by Kobe city in an area between mountains over the course of 30 years from 1977. A total of 3,266 people lived there as of May, with those aged 65 or older accounting for 40 percent.

The outlet, affectionately called “Co-op san” (our dear Co-op), has long been an indispensable means of shopping for elderly residents with limited mobility options.

VOLUNTARY CAMPAIGN BY RESIDENTS

In April last year, Co-op Kobe, the operator of Co-op Mini Tsukigaoka, announced that the store was among candidate outlets to be closed for good with the continuously shrinking population in mind.

Co-op Kobe said it would decide whether to actually shut down the shop around the fall at the time.

Amid a declining number of residents, successive losses were chalked up as a result of the outlet’s drastically reduced profitability. On top of that, a freezer and other equipment were needing replacement.

The operator thus had to decide if it should invest a large sum to keep Co-op Mini Tsukigaoka open.

The supermarket started operations in 1988. The store’s finances have been on the decline since its peak in 1993.

The business was scaled down in 2004, allowing the shop to remain accessible to regional consumers under the Co-op Mini brand marked by a minimized lineup of products.

This change further drove customers away in droves. Residents began traveling to another large supermarket 15 minutes away by car on more occasions, as a wider range of goods were available there at more affordable prices.

The decreased population in a specific area can lead to simplified services in the neighborhood, which may, in turn, result in a further drop in the number of residents.

Failing to end this vicious cycle could render daily life difficult, wreaking inevitable havoc on the local community.

Led by Kaoru Ogawa, 78, head of the district’s resident association, a campaign was launched to extend aggressive support to Co-op Mini Tsukigaoka by shopping there.

The objective was “taking the issue seriously as a community-wide challenge and going all out to maintain the supermarket on our own.”

The resident association regularly held talks with Co-op Kobe and the Kobe city government, after Co-op Mini Tsukigaoka was included in spring 2023 on the list of branches that could be shuttered.

They worked together to develop an approach to keep the Co-op Mini Tsukigaoka operating.

As the residents’ association asked the operator to propose a sales target to keep the outlet open, the display of the sales graph began.

Co-op Kobe called for residents’ cooperation, such as making reservations for products and encouraging those who have never shopped at the store to spend money there.

With the implementation of these countermeasures, the sales at Co-op Mini Tsukigaoka saw a remarkable recovery.

Co-op Mini Tsukigaoka pushed for consumers to select older products placed before their fresh counterparts under its “front first” drive to reduce food loss. This helped improve the store’s gross profit margin.

Last autumn, a decision was made to continue the outlet’s operations.

Still, slowing the sales effort may put Co-op Mini Tsukigaoka back on the list of stores that can be abandoned soon.

Locals are now concerned enough to shop at their beloved Co-op outlet in preparation for community events despite its relatively expensive price tags. They try to make bulk purchases on weekends there, too.

A “gathering space” was set up in a vacant corner within Co-op Mini Tsukigaoka, so that shoppers can try what they have just bought on site. A yoga class has also been organized, providing an incentive for residents to visit the store.

The entire Co-op Kobe is financially struggling as well. Its brick-and-mortar stores have constantly been producing losses in total since the Great Hanshin Earthquake struck Kobe in 1995.

Although Co-op Kobe’s delivery business is in the black to make up for those losses, the shipping section is expected to likewise face difficulties given a shortage of drivers and other problems.

Seven of the 54 stores of Co-op Kobe in the city have already met the criteria for candidate shops for closure.

Makoto Uematsu, the comprehensive manager of the store management department of Co-op Kobe, said the operator will be beefing up its collaboration with consumers, as customers are its important partners for the survival of brick-and-mortar outlets.

“We will be raising the awareness of the difficult situation of our shops, so we can join hands with users for improvement,” said the manager.

Ogawa is agreeable to the collaboration. 

“Our community has changed its mindset to protect our own lives on our own,” he said. “The key to the community’s survival lies in whether we can reach out to the store operator and authorities and build a relationship of trust with them.”