JapanConsuming.com:July-August 2003

Focus: The new retail elite: Retail Rankings for 2002–03
Japanese retailing has turned the corner. No matter what is happening in the rest of the economy, retailing has found its plateau. With almost all figures for FY2002 now available, it is clear that companies are increasingly falling into two groups: the good and the bad. Those in the middle, ugly or not, are becoming fewer and fewer. The trend is clear. Japan’s best retailers are setting themselves apart from the rest and, in most cases, this means they are actually turning a profit.
Large store applications hit new record
Large store applications continue upwards. The number of companies driving this expansion is notably limited with the same names appearing every month, but it is those same companies who are set to benefit from new economic confidence.
Morgan Stanley launches Promena Retail Properties
Japan has a dearth of underperforming retail assets. What it doesn’t have are many able asset managers with both the retail ability and financial backing to turn these around. Recognizing the opportunity, Morgan Stanley Real Estate Fund has now set out to fill this void.
Kinko’s on a roll as office services expand
Office service shops like Kinko's have grown only slowly in Japan as they didn't fit the traditional business culture. Now, however, having your wife's cousin's sister's nephew do your printing is far less important than basic cost and convenience.
Cassina IXC develops interiors select shops
Cassina shows the way in interiors retailing for the younger urban market: select shops.
Dior: Louis Vuitton's successor in waiting
As this report discussed in an issue late last year, Louis Vuitton's sales continue to climb but there is a point at which the brand will reach the balancing point between further growth and dilution of the brand. Whilst there is little doubt that Louis Vuitton will remain on the throne for a long time to come, an heir is undoubtedly being groomed.
Itochu's denim fetish
In the past two years, Itochu Shoji has clad itself in every hue and cut of denim, signing deals with many leading denim brands in the US and Europe. This summer saw it add another brand and consolidate its position with others.
No pharmacist? No problem for Don Quijote
Don Quijote is known as a maverick, but a hugely successful one. Late night shopping remains controversial and not ideal for every location, but the chain has now shown it is prepared to go much further to meet consumer needs. It is now looking to get round Japan’s difficult pharmacy operation laws.
Giordano back to basics campaign, 100 stores
Giordano, the Hong Kong-based manufacturer and retailer of casual apparel, made its second attempt to enter the Japanese market in 2001. After several high profile store openings, the Japanese operation is still loss-making, but head office is proceeding with plans which should see Giordano Japan profitable by next year.
The end of Ralse, the rise of Arcs
There's nothing like a shiney, new acronym to bolster a good supermarket chain. With the ever expanding influence of Aeon and its many subsidiaries and growing acquisitions, Arcs needs all the bolstering it can get.
Timberland in Ginza, sales to double in Japan
This month sees the opening of Timberland's new Ginza flagship, featuring much stronger merchandising for young women, Ginza's main consumer market.

Yamada Denki integrates Daikuma
Yamada Denki has established itself as the undisputed king of electrical retailing, leaving all competitors languishing in its dust. The acquisition of the Daikuma discount chain last year has yet to bear fruit, but Yamada is now using its new arm to add an extra dimension to regional stores.
Aeon sells to city babies
Aeon has begun to rollout yet another adjusted format. Based on its usual shopping center development, the company will now allocate a larger proportion of sales space to its own Jusco GMS stores in new urban locations, and adjust merchandise more towards local consumer needs.
Lotto Sports races for 10% of soccer market
Lotto Sport, the Italian sports brand, has swapped sides in the Japanese market, signing a new deal with Kanematsu. The company hopes this will give it a 10% share of the soccer market and 7% of the tennis market within a few years.
Women improve themselves
Most overseas firms are aware that women are Japan’s most undervalued and underused resources and are taking full advantage of Japanese firms’ reluctance to keep women on over the age of 28. The good news is that this large body of skilled, motivated workers is continuing to train itself, investing in vocational training and less on the tea ceremony.
News in brief:
Blue Cult Japan begins operations
The new New Balance apparel company
French Connection seeks control
Mitsui expands licensing division
Surprise, Surprise: Everything for ¥1000
Carrefour Mino Store development
IY to open stores to 11pm
UK toy retailer Hamley’s to enter Japan
World still No. 1 for women’s apparel
Itochu textile/fashion sales down
Gruppo Tanaka signs Roberto Cavalli
Le Sportsac scooter
Brioni ups wholesale
Fewer swingers in Japan…
… But Goldman and Lone Star love Golf
Billabong to get more directly operated stores
JDSA introduces new sales qualifications
Japan land prices fall for eleventh year, Ginza rebels
Michael Jackson suits in Japan
Doutor enters China
Nagahori signs two Italian jewelry brands
Kintetsu expanding gaisho sales
Anna Sui store sales up
Healthy alcoholic trends
Printemps Ginza overhaul
Edwin expands in Europe
Kakiuchi, Trenza declare bankruptcy