September 2002

• The lure of luxury
• Louis Vuitton’s largest store worldwide opens in Omotesando, and 1,500 people wait in line for the new store opening on Sunday in 33 degrees.
• Young Japanese women swoon over old golfers
• Arnold Palmer, like Stan Smith, Lacoste and other old athletes, are the new idols of young Japanese women–or at least their brand names and logos are. Recently, fashion districts like Harajuku have been swamped with young women in search of both new and vintage sports wear from former top names. Now Renown is hoping old Arnie will contribute to its first profits in 13 years.
• Shimamura continues its stealth expansion
• Shimamura is the dowdy tortoise to Fast Retailing’s flashy hare. The 800 store chain had a lot of work still to do in branding, merchandising and supply chain management. Remarkably however, the company continues to expand store numbers, store sizes whilst creating a brand new and efficient supply chain system linking stores with factories in China. There are also signs that branding and merchandising are on the way.
• Marui Imai refurbishes, Five Foxes to open 3,500 sqm Comme ca Theater
• Marui Imai has had the worry about the forthcoming Daimaru new store opening across the street for a while now. ¥5 billion in refurbishment costs and a new Comme Ca anchor store are part of the medicine. Will it be enough?
• Damiani builds store network
• Damiani, the Italian jewelry firm whose products are favored by Hollywood stars established a Japanese company two years ago. Sales have grown 10 times since the first year and the company is now expanding further.
• Egoist revives
• Egoist Group expects sales of around ¥7 billion this year. A minnow by the standards of groups like Onward, World and Sanei but the company beat all comers to be the top brand during the Ko-Gal boom two years ago. At one point the 109 store was selling more than ¥100 million a month. Most brands with that kind of boom in Japan would soon have seen a major bust but not Egoist. New brands and updated merchandise suggests this will be an apparel group to watch.
• World expands collaboration businesses
• Last month World launched a new lingerie SPA chain in collaboration with top underwear manufacturer, Wacoal. It is one of many. Using its expertise and experience in developing several successful SPA chains, the company is using collaborations to be able to quickly develop retail chains in new fashion categories, confirming its place as one of the leading SPA groups.
• Costco gets competition from the locals
• Costco may be the biggest in the business, but it is not the only cash-and-carry retail wholesaler offering bulk merchandise to both consumers and business customers. There are others. All are still small, but growing strongly.
• CVS chains go for space: bigger formats give more options
• As the convenience store sector becomes increasingly saturated, chains are looking to change their standard formats in the on-going search for new competitive advantage.
• Large Store applications continue briskly
• Large Store applications are continuing at a brisk pace. May and June saw not only a steady increase in numbers, it also brought plenty of stores over 10,000 sqm and a number of welcome applications from overseas players.
• Trading customs: dying but not dead
• In the old days, Japanese distribution was often condemned for its uncompetitive and archaic trading customs. Now, Japan has modernized, but that does not mean all of the old ways are dead and buried. Today it is the manufacturers who wish they were.
• Kokubu and Ryoshoku tie up at the top
• Wholesalers see Wal-Mart's interest in Japan as a threat, plain and simple. The latest move to neutralize this potential problem is the joining of Japan's two largest food wholesalers in a new joint distribution venture.
• Fast Retailing's food plans get in the grain
• Fast Retailing is rapidly finalizing plans for its new food operations. Apart from discarding the Uniqlo name for the new venture, things are looking good. The company's latest announcement reveals it has secured supply of top quality rice that will form a core product line for the new venture.
• News Clips
• Sanyo expands Nick Ashley business
  Roppongi Hills brand line up
  Sankyo Seiko expands Christian Lacroix stores
  I love Brand Love
  Life Corp goes for profits
  Konami: high prices for free access
  Sogo Yokohama cosmetics floor up 70%
  Lancel flagship in Ginza
  Giorgio Armani cosmetics launch
  United Arrows up 34.9%
  Filanto steps forward
  Mycal store closures
  Sony has best website in 2002
  Mitsui Bussan sets up Costume Nationale
  Benetton adds more mega stores
  Retail Debts falling for many
  Daiei closes 10 stores, restructures logistics
  Mitsui Real Estate opens Namiki Dori fashion building
  Adidas and Yohji collection debuts next month
  Max & Co adds three stores
  Sanyo broadens Burberry men’s offer, adds imports
  Izumiya does retail brands