January 2003

• Metro opens inoffensively in Japan
• German cash and carry wholesaler Metro has opened its first Japanese store in Chiba. Unlike with predecessors such as Carrefour, early Japanese reaction is positive, but considering the careful thought Metro has put into its initial positioning and in dealing with intermediary suppliers, this is hardly surprising.
• Levi’s Japan plans brand investment
• Levi’s Japan has been busy modernizing its operations since the change of management two years ago. In a recent interview with Nikkei, the president of Levi’s Japan explained the changes.
• Onward abroad
• As reported last month, Onward Kashiyama, Japan’s largest apparel group, has launched a new global brand, Gibo, to be manufactured in Italy. As predicted, this is only the start of its global ambitions.
• Office Depot closes catalog subsidiary
• Office Depot Japan has closed down its Viking catalog subsidiary and is amalgamating operations under a single banner. The chain desperately needs to find its retail feet.
• Itochu helps Raika target other Asian markets
• As reported before in JC, the sogo shosha are key collaborators in the expansion of Japanese apparel groups into Asian and other international markets. To date this has mostly been about SPA chains but now apparel brands are also being marketed overseas.
• Electrical chains increase profits
• Electrical retailing continues to be one of the hottest sectors, with more companies looking not only to pile on size but actually to increase profitability. Unlike companies in some sectors we could mention, the best electrical chains are increasingly also the most profitable.
• Renown to see a net profit in 2003?
• Renown has been posting losses for the last 13 years but has still managed to keep its bankers on side. Finally, it seems, after many years of promising, the company could turn a profit.
• Food Consolidation: trading houses only please
• Food market consolidation is an increasing theme and one that is gathering greater momentum month to month. The key factor is the intervention of the leading trading houses, all of which clearly believe they should control not only raw materials, but also the supply and distribution of finished product.
• Japanese socks a hit in London
• Uniqlo and Muji receive all the attention when it comes to Japanese SPA expansion into Europe, but in a not so quiet corner of London’s Kings Road a less well-known SPA brand seems to be doing rather well.
• Aeon expands superstore format
• Aeon seems to be generating most news from its drugstore and supermarket activities. The company also has three experimental ‘superstore’ outlets, the third opening in Nara in the early Fall. Aeon claims this is one more response to the entry of Wal-Mart—in other words, what works in the West, will work in Japan.
• Suit chains go upmarket
• The two price war between the suit specialty chains and the GMS chains continues. But now it seems leading chains like Aoyama and Aoki are having another go at the department stores through new upscale suit corners.
• Mitsui acquires a taste for Mango
• Last year Mitsui Bussan announced a new investment fund to buy into Japan-based and international brand businesses. Following investments in Hanae Mori and Le Ciel Bleu, the company has now acquired a controlling share in the Japanese business of Spanish SPA brand Mango. Along with its deal with French brand Irie, the investment marks an expansion for Mitsui outside the premium luxury market and into volume fashion brands.
• Seibu seeks marriage blessings
• The much anticipated marriage between Seibu and Sogo is getting closer—or is it? The union would give birth to the largest chain of department stores in Japan, and possibly in the world. With Itochu Shoji in place as main trading company and supplier of retail brands, all the couple need now is a little help from the banks. Not everything is rosy, however.
• Convenient supermarkets
• Supermarkets are improving their profit margins and building increasing loyalty value among customers. None of the better chains can afford to rest on their laurels.
• Ships goes after United Arrows
• Following the hugely successful relaunch of family store Green Label Relaxing by United Arrows, select shop rival Ships has launched its own children’s only store fascia. It seems that consumer choice at the premium end of the children’s wear market is expanding finally.\
• Beisia: 50 little Wal-Marts by 2005
• Beisia Group is one of the most private retail conglomerates in the country, operating from a low-key base in Gunma Prefecture. But it is one of the fastest growing with some sector-leading fascias like Cainz and Workman.
• Mokumoku expands in Asia
• One of the first SPA operators to make the move into other Asian markets has announced another 40 stores in South Korea and Taiwan and a launch into China.
• Focus: There’s profit in cloth
• With more headlines in the tabloids of gloom and doom in the retail sector on the back of just a few examples, JC continues its series highlighting the many sectors where retailers are performing well. Last month we took a look at consumer electronics chains. This month it’s the apparel and fashion specialty retailers.
• News in Brief
• Wal-Mart acquires Seiyu control
  Toys ‘R’ Us has first baby
  Daiei to sell Hub
  Uniqlo like for like sales down 20% in November
  Armani opticals up for grabs
  Itochu shuffles Nautica license
  Chanel prepares for expansion
  My City gets a face-lift
  Point to open in Taiwan
  Xebio opens Next Kids
  Mitsui goes for mobile commerce
  Yodobashi scores another hit
  Fred Perry store in Harajuku
  Flandre ties with Italian manufacturer for new brand
  Shimamura to raise dividend
  Baycrews up 10%, profits down
  Naracamicie Japan aims for listing
  Jupiter up 30%, QVC more than 20%
  Tesco enters Japan
  Descente and Mizuno take a swing at Korea
  Zara’s seventh store
  Learn to smile, damn it!
  Mycal left owing ¥1.22 trillion
  Daiei: Season of good will
  Daiei sells off restaurant chains
  Kinokuniya gets new president
  Japan makes fashion out of Christianity