May 2003

• JR and Daimaru do Sapporo
• JR has opened the third of its major regional station developments. Following on from JR Isetan in Kyoto and JR Takashimaya in Nagoya, Daimaru has joined forces with the semi-privatized national railway company to open its first store in Sapporo. Starved for new retailing, consumers flocked to the store in such numbers that initial figures suggest this could be the most successful new department store yet.
• Shimamura continues expansion
• Shimamura, the Saitama-based casual apparel chain posted further gains last financial year and opened a record 102 stores. This year it will open even more stores. 1.2 million new shares are being distributed to individual investors, many the chain’s own customers. Shimamura executives are also driving down costs, convinced that Wal-Mart will force apparel retail prices even lower in Japan.
• Rogers does food
• Another small Saitama based firm shows that a bit of forethought can reap big dividends. Rogers is a rare example of a company that has changed in order to survive. There are some other retailers like this but others should be taking notes.
• Renown’s Aquascutum ambitions
• Renown has taken huge strides to reduce its excess inventory of brands. With much of the clearance work complete, the focus now is on rebuilding its remaining collection. Of vital importance for Renown’s future is Aquascutum.
• Coach: Fuelled by Flower Power
• Last month, an American luxury retailer managed to rebrand Spring—at least within the microculture of Tokyo’s Shibuya district. To launch a new flagship in the area, Coach took over the streets with video, flags, posters, dancing girls and a double decker bus. Shibuya gals swapped cherry blossoms for Coach daisies.
• Yaoko: the Tesco of Japan?
• Nestled in the suburbs and regions are a few surprisingly impressive and clearly successful supermarkets. One, Yaoko in Saitama, is known to have made mouths water for both consumers and potential overseas acquirers. Yaoko insists its not for sale, but it is one supermarket that is well worth a look.
• More informal retail employees
• Japan’s Census of Commerce provides detailed a three-year snap shot of the distribution system. While it concentrates on the traditional small stores, the most recent results show that retailing is becoming the province of the informal employee.
• Aeon spends ¥37 billion on IT
• Aeon will be the Wal-Mart of Japan—or so it hopes. In sync with its expanding in-house logistics ability, Aeon is spending huge amounts on information systems. 2003 will be the peak year for this development.
• Nasdaq too much trouble: Ito-Yokado
• Ito-Yokado’s announcement that it will withdraw from the US Nasdaq was made with a certain amount of inevitability. The company seems to have been surprised that what it sees as a necessary step has been treated with suspicsion by investors.
• Adult entertainment: married couples aim to have more fun
• While Japan’s consumers age rapidly, few companies have grabbed any lead in chasing this new and developing market. There is a lack of interest and a lack of research despite the fact that it will soon be the most important market in Japan. A recent Dentsu survey adds some small hints of things to come.
• Time to bow out quickly: Daiei
• Daiei is becoming the retail equivalent of a flying pig – much talked about, but totally unbelievable. Yes the company was once Japan’s biggest retailer for a short time, possibly even its best. No longer, and, let’s be honest, never again. The break up of the core retail components can no longer wait. Selling its stores and quietly but rapidly disappearing is the one, brave, final thing left for Daiei to do. The alternative is just too unthinkable.
• News Shorts
• Marina Rinaldi expands
  Seiyu to cut 2,500 jobs
  Takashimaya expands direct imports
  Isetan lays out the plan
  Toys R Us to close stores
  Aquacity sustains footfall, sales
  Toyoda Trading signs with Sportsbrand, expands C.P. Company
  Secaicho signs Disney
  Easier large store openings
  Lower income at Muji
  Tully’s on the move
  Takashimaya spins off one store, buys another
  New Nagoya home for electricals
  HP France expands sales of Fariero Sarti
  Hitachi gets modern
  To be Confirmed plays in Japan
  Kenzo japan becomes full LVMH member
  Latest Diamond City announced
  Okuwa to expand chain
  Asics goes direct
  Lightning Bolt strikes Japan
  Escada Japan goes casual
  Clothing, furniture down big time
  Banned imports jump 2.5 times
  Profile expands imports of Spanish leather
  Sumitomo establishes Chinese bridgehead
  Cabin gives it another go
  Gigas joins the Edion movement
  Retailing the weather