May 2005

Focus: All hooked up but nowhere to go
This month’s focus takes a look at the status of computer and mobile usage. Japan used to have one of the lowest penetration rates for computer use and one of the highest for mobile phones. It now has some of the highest levels for both. 3G adoption is particularly high—but where is the killer app?

Coach ends Sumitomo joint venture
Coach, it seems, can do no wrong. In Japan and its home market of the US, sales have escalated at enviable rates of growth for the last few years as its customer base deepens and widens across new consumer segments. Its Japanese operation was always marred by having to share the dividend of all this hard work with Sumitomo. No longer.

Marui Imai looks to Isetan
Hokkaido's largest department store, Marui Imai, is desperate to restructure its operations in order to survive. It is looking for a deal from lenders, but it is also hoping to entice Isetan to takeover.

Aeon announces Asia wide expansion
Having lost its chance to takeover Daiei, at least for the time being, Aeon is turning its attentions to Asia. Store expansion in Japan is to be reduced. More than 90 new stores and shopping centers are expected in Asia over the next three years. At the same time, Aeon and Ito-Yokado little affected by Chinese protests

Wal-Mart bails Seiyu out, again
Seiyu may be managed by Wal-Mart, but things are not progressing any smoother for the world's largest company than they did for Carrefour, Boots, or Dairy Farm. Now, after another dismal quarter, Wal-Mart has been forced to chip in another ¥10 billion to save Seiyu's bacon.

Shibuya 109 hits new record
Noisy, brash and in your face, Shibuya 109 is difficult to ignore. The main 109 building has provided a welcome stream of income for Tokyu and this year sales hit a new record. With its core market of teenagers proving fickle however, Shibuya 109 is being modified to encourage a wider range of customers.

JR East restructures retailing
JR East claims a place in the rankings of the top 10 retailers in the country due to its station building developments such as Lumine and Atre. With this size came one of the messiest and confused corporate structures—this in a corporate culture that used to make a virtue of such obfuscation. Now, like the rest of the retail industry, JR East is pulling it all together into a streamlined and focused whole.

Mitsukoshi and Takashimaya: difficult futures
Japan's leading department store companies announced improved profits but continuing and alarming downward slides in sales for FY2004. Arguably both Mitsukoshi and Takashimaya are making efforts to change, but accomplished results still lag behind actual big ideas. Also, Mitsukoshi is to open in China

Cecil McBee runs and runs
Cecil McBee has been to the early 2000s what Egoist was in the late 1990s. Beloved of young Shibuya fashion victims and their equivalents around the country, Cecil McBee has been the number one seller at 109 for the last five years. Its owner, Delica, has used the cash flow to buy the Kookai franchise and launch an SPA business. A new fashion star in the making.

Editorial: FTC: Japan's silliest institution

Ito-Yokado: a group in trouble
Ito-Yokado is still the darling of the Japanese retail industry, but it's not the company it once was. Today, Seven-Eleven is bigger and better than its parent, but senior managers cling to the idea that they can still squeeze mileage out of their tired GMS chain.

Itochu restructures import business
Itochu has announced sweeping changes at its principle subsidiaries in charge of international brands, for both distribution and licensing. Wholesaling and retailing operations are now being brought in house. As with Mitsui, the implications for their dependents in the wholesale and retail sector are depressing but will mean further acceleration in the streamlining and concentration of fashion distribution. Also, Itochu International signs Le Coq Sportif for US market

Daiei gets new execs
Following the decision to appoint Marubeni as executors to Daiei’s future, the IRCJ found itself disagreeing with its new partners as to choice of CEO. Marubeni wanted a woman with a compelling sales record, IRCJ didn’t. The IRCJ won this battle, and at last Daiei has a new president in place. IRCJ might not have liked Marubeni’s choice, but it’s now up to their man to perform.

Short News stories
Segami Medics leverages customer data
D'Urban goes after GMS menswear market Sergio Tacchini cancels joint venture
Itochu takes Hanten from Sankyo Seiko
Benetton signs with convenience store chain
Phoenix adds Meitetsu to its supermarket operation
Mitsui signs Union Bay
Wacoal looks for acquisitions
Millennium: ¥90 billion for refits
Geox selling well in Japan
HCs go for experience
Pompea ties the knot with Sumitex
Tokyu: suddenly serious about retail
Xebio acquires Victoria
Firms record large losses on asset impairment
Gateway to Japan Fashion exposition
Yoox targets Japan
Le Ciel Bleu name change
Take Two signs Japan distribution deal
Hankyu's record profits
Mediceo acquires Paltac to form largest wholesaler