Three years of Abenomics, Prime Minister Shinzo Abe's bold stimulus program, has failed to dislodge a deflationary mindset among businesses and consumers.
As the world's third-largest economy falters again — with a stronger yen gnawing at overseas profits and domestic consumption sapping companies' confidence to invest or sufficiently raise wages — firms that increased their prices in the hope of a sustained recovery are rethinking their strategy.
Many consumers, with little extra to go around, are opting for cheaper products — welcome news for the discount retailers who flourished during two decades of economic stagnation.