March 2003

• Sogo: not quite so gone
  Sogo is mapping out its road back to stable, even profitable operations despite continuing to carry a large load of interest bearing debt. More details are emerging of the formal tie-up with Seibu due to take place later this year.
• V&A targets Japan, ends IFS license
• The growing market in Japan for brands which mix fashion with interiors backed by authentic brand values is not news. What is news is the paucity of really authentic brands that can credibly and legitimately bridge both fashion and interiors. A museum in London might have the answer.
• Charles Jourdan focuses on Japan
• As part of a reorganization of its global business that has included the appointment of British shoe designer Patrick Cox as chief designer, top shoes brand, Charles Jourdan will cut back its license program in Japan and expand investment.
• Loro Piana Japan triples sales
• The lure of cashmere has been confirmed: the leading Italian firm of cashmere yarn and branded goods has posted impressive performance since setting up in Japan.
• Onward Kashiyama signs more overseas brands
• Onward is adding new brands at a fast clip, and also sorting out troubled affiliates as it prepares to become a global brand distributor.
• Aeon leaves Oasis dry
• Aeon, the GMS to drug store retail conglomerate, has terminated another overseas retail joint venture, signed by its subsidiary Blue Grass more than six years ago. Despite some high profile successes, this is another in a long string of failed international deals related to Aeon.
• Drugstore sector still in good health
• Drugstores are one of the key growth areas, and last year's results prove the point. The majority of big chains are seeing growth in both overall and, that Holy Grail of retailing, and same store sales. Consumers are flocking to drugstores and, thanks to changes in medical charges, the flow is even likely to increase before it declines.
• Mix and match convenience
• Convenience stores have now operated in Japan for more than 30 years. Today the sector is saturated, with some 37,000 stores, more than half of which are operated by only five chains. While the sector is one of the most successful, it is time for companies to look at doing something new.
• Spinning Osaka windmills: Don Quijote
• Tokyo based Don Quijote is one of the hottest brands in Japanese retailing at present. The company is now quickly rolling out new stores in the Kansai region with equal success. Late night Kansai shoppers are in for a new discount store treat.
• Point continues rapid rise
• Point is one of Japan's fastest growing fashion retailers. Although originally started as a chain of multi-brand stores, the company has seen the best growth come from its SPA stores.
• Kate Spade ends licensing
• Sanei International has a good reputation for developing both its own chains of women's wear brands and overseas labels too. In a sign of its flexible approach, the company has announced new terms with top bag brand, Kate Spade.
• Comme Ca Store in Nihonbashi
• Preparing for the hoped for transformation of a depressed shopping district, Nihonbashi's rebirth as a trendy urban living environment will be helped along by a new Comme Ca Ism store there this year.
• 2002 goes out with a whimper
• The full calendar year of data is ready for 2002. A few chain stores will be happy, but department stores, with few exceptions, had another awful 12 months. There still seems to be no end in sight for the malaise among Japan's general merchandise format retailers.
• Aeon continues store expansion plans
• Aeon is one of the few chains currently looking to expand store numbers. The strategy continues this year with the group planning up to 95 new outlets across all chains.
• Keiyo plans HCs in Chukyo and Kansai
• Major home center operator Keiyo is planning a big shift south. Currently, Keiyo is concentrated mainly in Kanto and north Japan, but plans to enter less competitive markets around Nagoya and Osaka.
• Ryohin Keikaku readies 15 new stores this year, ties with outside designers
• Ryohin Keikaku looks to have sorted out its supply chain problems and is beginning to expand once again--in overseas markets too.
• Focus: The Luxury market: mutterings of doom
• Much is being made of some poor performances from a few international luxury brands in Japan, creating a deluge of gloomy (and sometimes gleeful) reporting. Even the most experienced analysts still find it hard to explain the continued healthy sales for some key international brands despite the troubles of the majority of retailers. The high demand for luxury brands while retailing overall slumps is a paradox that is difficult to dismiss. The end is nigh for luxury brands, isn't it? Success can't possibly continue, right? Over the next twelve months, even some of the better brands will come under pressure, but the best will continue to prosper, not only despite the recession, but because of the recession.
• News clips
• Chelsea announces new outlet for 2004
  Isetan to open third Barney's store in Japan
  Kojima completes new distribution infrastructure
  Kawano to open Japan, China stores
  Tod's flagship and office opens
  Sissi Rossi in Japanese retail deal
  L'Oreal offers cheaper cosmetics
  Seicomart cuts store opening costs
  Department stores end multi-label confusion
  Chanel rebuilds in Ginza
  Epoca's rapid rise
  Retail sales down six years running
  Isetan's venture into small format retailing
  CGC plans cash service
  Misaki opens more Gherardini stores
  Ito-Yokado takes over Sogo Nara site
  Rockport's brisker pace
  Mokumoku signs children's wear license
  Itochu's Funny Company ties
  Orizzonti opens new Vivienne Westwood flagship
  Lentini introduced three new brands to Japan
  Daiei sells X-one
  Isetan's escalating advertising