January 2001

• MICA to sell stores to overseas buyer
  Number four Japanese retail group, MICA is closing 45 stores. No big surprise in that, but industry insiders claim the stores are almost certain to be bought by an outsider.
• Japan Tobacco & Yukijirushi to merge?
  JC has heard that government officials have been putting pressure on Japan Tobacco, the world’s largest tobacco company, to merge with Yukijirushi, better known overseas as Snow Brand.
• Daiei: A Phoenix–still in the ashes
  Japan’s troubled number two retailer is at last announcing the kind of steps investors have demanded for years. But rumors of a Wal-Mart takeover are pulling Japan Inc. to Daiei’s support
• Jusco makes drugstore retailing a nationwide operation
  The Jusco Affiliation is taking shape in the form of Japan’s first nationwide chain of drugstores. The first of many Japanese and overseas chains to expand nationwide.
• Exciting times at Isetan’s new Tachikawa store
  Isetan is expanding its suburban outlet and expects good results
• Wrangler falls victim to discounters
  Wrangler, one of the big three in the denim market in Japan has lost the battle against discounters and competitors and will now be licensed to Edwin, the biggest Japanese denim maker and fierce competitor of Levi’s.
• World Inc.’s “virtual” SPA helps regions
  World has come up with a new retail model, allowing leading apparel company to penetrate less accessible regional towns.
• Fitness First to enter Japan soon?
  Several USA chains have tried out the market, and Japan sells a lot of imported fitness machines, but will a UK company be the next to succeed?
• New store applications evaporate away
  As JC predicted, the new Large Store Location Law has had its effect. Retailers are still coming to terms with just how difficult opening new stores has become.
• Biggest Comme Ca Store opens in Kobe
  Five Foxes, the leading apparel and lifestyle group has opened its largest store yet in Kobe’s Harborland complex.
• adidas: Sales of ¥50 billion by 2003
  adidas Japan has managed to cancel a 30 year distribution relationship, set up a 300 man office and cement ties with retailers across Japan all in the space of three years. It has just announced projected sales which could be a record in its trading history with Japan.
• Focus: Changes in the retail landscape: buy, buy, buy
  Land values here have gradually been whittled down in the last decade since the asset bubble burst, leaving the way open for a spate of overseas retailers to set up shop here–without the help of land owning local partners.
• News Clips
  L.L. Bean goes it alone
  Love mail hooks salarymen
  Winter Bonus rise, first since 1997
  Burberry flagship opens
  Digital TV to reach 24 million households
  Benetton opens another megastore
  Sanei signs two cosmetics brands for own stores
  L’Oreal purchases a bit more of Japan
  Vintage clothing boom continues
  Cosmetics brand H2O Plus to slash Japan prices
  Sanei expands SPA business into eyewear
  Furla’s licensing to contribute ¥2.5 billion
  Competition takes the froth off Starbucks Japan
  Yagi Tsusho wraps up in cashmere
  Fast Retailing: victim of Japanese projectionists?
  Another deal for Itochu, in retail this time
  Surfing into Japan
  Second hand shops make good business sense
• RETAIL DATA: The good...and the just plain ugly