Recent price hikes are not only hurting Japan's consumers but also the country's supermarkets. They have seen demand fall after surging during the coronavirus pandemic.

Major retailer Seven & i Holdings said on Thursday operating profit at its supermarkets for the six months through August was 4.2 billion yen, or about 29 million dollars. That is a 61-percent decline from the same period last year.

Rival chain Aeon reported earnings at its food supermarkets slumped 39 percent for the March-to-August period.

Sluggish food sales were a major factor behind the decrease. Profit also shrank due to higher wholesale prices and increased energy costs.
However, it was a different story for the groups' consolidated earnings. Both companies posted record-high half-year sales and profits.

Operating profit for the Seven & i group came to 234.7 billion yen, or about 1.6 billion dollars. Brisk sales at its overseas convenience stores drove up earnings.

For Aeon, an expansion of its drugstore business paid off. The group logged profit of 95.8 billion yen, or 665 million dollars.