more telling statistics, today it was reported that convenience store sales were DOWN 7.5% in July which is down for 2 straight months. According to the Japan Franchise Association folks who actually walked into their shops were down 4.5%.

I think this is a somewhat damning truth to the underlying problems here in Japan. "Convini" as they are known over here sell just about everything that supermarkets do and are very popular for the discount lunchbox buying crowd. For example you can pickup 2 riceballs, in a variety of flavors along with a drink and something sweet for about 500 yen. About 5 bucks. This compares very favorably with McDonald's new lunchtime menu campaign.

Convini sell stamps, concert tickets, hot food and allow people to browse their magazines essentially for free. During the summer heat which is easily north of 85 degrees and with humidity that can reach 70 or even 80% the idea of visiting your local airconditioned convini to read and cool off is quite inviting.

Yet sales are down and customers entering the shops are down too.

a very bad sign.

more later