Focus: Inevitable modernization: wholesaling consolidates
Within the distribution industry as a whole, Japanese wholesalers cling to survival, but their grip is becoming increasingly tenuous. Despite the renewed strength and leadership role of trading houses, Japan’s unique ‘super-wholesalers’, the rest of the sector has the same prospects as their counterparts in other modern markets: almost no prospects at all.

Daiei’s suitors plan the wedding
Daiei has got its initial list of seven potential rehabilitators. Not surprisingly, the list is made up of all the usual large retail bidders. But while the short list candidates draw up their final plans, in order to pacify various political interests, the IRCJ is running through a series of measure as to how it thinks Daiei should be rebuilt, suggesting a disturbing lack of autonomy for whoever should get the final decision in January.

Onward into Europe, Asia and the US
As forecast four years ago in JC, Onward is beginning to lead the push into overseas markets by Japan's leading apparel conglomerates. Unlike vertical retailers like Fast Retailing, it is developing a genuine multi-national business in three continents.

Daimaru Peacock to sell 300 Waitrose brands
Daimaru Peacock, the upscale Tokyo supermarket, is to expand its relationship with the UK supermarket chain owned by the John Lewis Partnership, Waitrose, and an equally upper end food retailer. It will increase the number of imported Waitrose private brand items to some 300 over coming months.

More fashion retailers expand across Asia
The examples of Japanese retailing expanding across Asia continue to increase in number. Neither Narumiya International nor MokuMoku are particularly large apparel businesses and their expansion overseas shows the extent and depth of future growth through Asian expansion.

Uny announces new store expansion
Uny, a company seen by many as the last big acquisition target once the Daiei issue is resolved, remains a strong but regional chain. After five years of consolidation, the company has now announced nine new stores for FY2005. Could it be too little, too late?

Aeon: building and rebuilding
Aeon is still in the process of rapidly expanding its retail facilities, including GMS, supermarkets, and shopping centers. It is also rethinking existing stores, including tearing down and rebuilding some key locations, making the tenant mix more diverse and generally expanding floor space.

Tokyu Hands diversifies
As reported previously, Tokyu Hands has been trialing a range of small format specialty stores as part of plans to expand beyond its large format store base and turn itself into a specialty store chain. With sales and profits declining, the move comes none too soon.

More fashion firms invest in Japan
The shift to direct investment in Japan by the larger international fashion brands has been well documented. Smaller firms have filled the capacity of their former Japanese distributors but others have seen the merits of direct operations and moved in themselves. Piero Guidi and Borbonese have just become two more cases to add to this trend.

Daimaru gets competition for Sendai project
On the back of its success as the key tenant in the revitalization of JR Sapporo Station, Daimaru is now negotiating to open at the JR Station in Sendai. Unlike Sapporo, Sendai has few existing department stores and is ripe for new developments. Now both Marui and Millennium have decided they also want a piece of the action.

Itochu organizes joint food branding
Itochu has begun the development of a series brands with smaller, regional food suppliers. Itochu will provide the marketing, some finance, but mostly the introduction and coordination. It will also provide the sales routes to get the new brands into stores.

Retailers get to squeeze beer makers
Beer manufacturers are set to implement their new distribution rules from January, abolishing sales volume rebates and recommended retail prices. Problem is, too many wholesalers survive solely thanks to the old system and the largest retailers simply won't broker price increases anymore. Time for some healthy bankruptcies in the wholesale sector.

Tokyo's a bargain for retailers
A recent report by London-based real estate firm, Cushman & Wakefield Healey & Baker suggests that Tokyo is one of the cheapest large capitals to set up shop in. Despite a reputation as one of the toughest and most expensive cities to do business in, for retailers it seems that eight other capitals are much more expensive.

FoxTown Factory Stores to launch in 2006
The first foreign-owned and operated shopping mall, Vivit Square opened just last month. Now another overseas mall operator, FoxTown Factory Stores, plans to launch in 2006, bringing with it numerous overseas brands.

ABC-Mart invests in sports and outdoor apparel
ABC-Mart is known principally for using focused investment to move from eighth to second largest retailer of casual footwear within five years behind sector leader Chiyoda. Now ABC-Mart plans to do the same for sports and outdoor apparel.

Daiki takes the HDK alliance south
Daiki has been handed the south of Japan as its domain under the HDK home center alliance organized by Aeon's Homac chain. The leading Shikoku chain is now fast expanding in southern Honshu and has plans for Kyushu in 2005. Much of its growth will come from M&A.

Convenience stores go for loyalty
Loyalty cards and frequent shopper programs are common around the world with varying degrees of sophistication. As with so much in modern Japanese retailing, convenience stores are coming up with new and innovative ways to expand the concept and make it work here.

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