Jul-August 2018 Top Stories

Jul 16

FOCUS: Retail Ranking FY2017: strong performance across all formats as everyone pushes online
The retail industry enjoyed another extremely good year in FY2017. There are now 79 companies with sales of ¥250 billion or more, including franchise operators and holding companies, and overall sales grew by 4.5%, ahead of the 1.9% growth in retail sales overall. This month’s focus provides a comprehensive summary of the major developments, focusing on the two key trends of e-commerce and greater group concentration, with an analysis of each of the major format sectors in the ranking.

Rizap: 10-fold growth in five years
Rizap is an opportunistic business, starting out in health foods and gyms, and then acquiring its way to a significant share of the fashion and lifestyle business. If its forecasts are right, by the end of this year it will have increased sales 10-fold in five years, while also extracting value from chains like Jeansmatethat had lain dormant for decades, all the while exploiting the growing convergence of the fashion and sports markets through a manufacturing-to-retail business.

Editorial: Retailers had an excellent 2017

Magaseek: 50% jump in sales this year
Forecasting mega jumps in sales seems to be a trend among e-commerce malls at the moment, and Magaseek refuses to be left out, despite producing the slowest rate of growth among all the leading malls in the last five years. Its biggest hope is mobile fashion thanks to a big push from parent NTT Docomo.

Familymart leads break out from conbini market
Facing stagnation, the three big convenience store chains continue to dream up yet more new ideas designed to drive footfall, including new hybrid formats, encroaching on drugstore and supermarket territory, and even bookstores. In Familymart’scase, the shift is being driven by parent Itochu as it strengthens its control of the CVS chain.

High Net Worth Households look for practical value
There are more wealthy households in Japan today than in 2012, but the latest generation of ‘new rich’ are less inclined to spend for status. Whereas in the 1980s newly wealthy households spent wildly on flamboyant brands to display their wealth, today their successors are more inclined to buy top quality for practical reasons, with no aversion to simple, high quality, but low price alternatives where available. The shift demonstrates a maturity in the market as a whole.

Showrooming stores a reality
Showrooming used to be a pejorative term, but retailers are now beginning to create stores specifically with this in mind, offering a full set of samples but with all orders channelled online, freeing staff to focus on offering a personal styling service.

SC sales recover in 2017
Tenant sales at leading shopping centres recovered well in 2017 after a tough 2016. While accessories, sports and eateries did as well as expected, apparel also had a much better year compared to the tough trading in 2016, and the station/fashion buildings that moved to a more premium position outperformed the sector.

Itochu ramping food wholesale business to merge with own retail
Nippon Access is one of two huge Itochu owned food wholesale firms,and has made its fortune in no small part through supplying Seven Eleven. Now that Itochu’s own convenience store chain, Familymart, has become a powerhouse in its own right, Access may well move more of its business across to the in-house retailer and to provide a base for Itochu dominance in food distribution.

70% of online fashion sales through mobile phones
Japanese consumers love to shop online and prefer to use apps on smartphones to make purchases, with Japan leading the world in mobile transactions. In the past yearthis tendency has strengthened further, with customers shopping more while commuting, offering a clear time window for promotions.

Profits rise amid falling sales for jewellery retailers
Japan’s jewellery retailers have had a dreary decade, forced to slash stores and brands in order to stop the flow of red ink, There is some optimism now, though, as the sales fall looks to have bottomed-out and profitability has greatly improved. The only real growth last year came from Milk, an SPA retailer with a clear target and strong brand focus, showing what the market demands.

Mitsui SCs up 1%, 8 record highs
Like other SC developers, Mitsui Real Estate enjoyed a strong 2017, and is optimistic about the next three years, with plans for several 50,000 sqm plus malls in the pipeline.

Lawson shifts online food to mobile
After five years of lacklusterexperiments, Lawson will close Lawson Fresh from August, switching its focus to the successor service, Lawson Fresh Pick, which launched in February. The move follows a similar shift by Seven Eleven last month and leaves Familymart the only chain not leveraging its large store network to sell food online – yet.

IN BRIEF
Itochu signs Minnetonka
United Arrows targets 30% online sales
Yoga market expands
The Outnet launches in Japan
Gladdbuys Gilt Japan, heads for IPO
Major couriers plan further price increases
Laox restructures footwear divisions
LeSportsac growing again
Roppongi Hills aims for luxury positioning
Yaoko wants to be Japan’s No. 1 local supermarket
Population continues to decline
CCC completes Kitamura acquisition
Apparel cloud platform Sitateru raises funding
Ray-ban gets first Japanese direct store
Tsuruha to become first 2,000 store drugstore
Paypal services expanded in Japan
Amazon to open latest DC using Amazon Robotics
Tokyu to spruce up Kabukicho with 85,000 sqm development
Olivia Burton now selling in Japan
Instagram adds e-commerce functionality
Chain stores fair poorly in May, apparel down 8.3%

Companies & Brands In this Issue
ABC Mart
Adastria
Aeon
AirBNB
Alpark
Amazon
Angeliebe
Aoyama Shoji
Arcs
Atre
Auntie Rosa
Axial Retailing
B-Connect
Baycrews
Beams
Belluna
Beyond Cool
Bic Camera
Big A
Bigi
Calbee
Cawachi
CGC
Chubu Yakuhin
Circle K Sunkus
Coen
Cosmos Yakuhin
Cox
Criteo
Culture Convenience Club
Daiei
Daiso Sangyo
DCM
Descente
Don Quijote
Edwin
Estnation
Ete
Facebook
Familymart
Fast Retailing
Fila
FU Holdings
Fuji
Geo
Gilt Groupe
Ginza Six
Gladd
Green Label Relaxing
H2O Retailing
Hapicom
Heiwado
Hershey
Himaraya
IKEA
Inditex
Instagram
Isetan-Mitsukoshi
Ito-Yokado
Itochu Shoji
IY Fresh
Izumi
Izumiya
J Front Retailing
Japan Post
Jeansmate
Jouet
JR East
JR Kyushu
JR West
Jupiter Shop Channel
Kasumi
KDDI
Kintetsu
Kobe Bussan
Komeri
Lalagarden
Lalaport
Lanvin
Laox
Lawson Fresh Pick
Lazona
Leilian
LeSportsac
Loax
Locondo
Lohaco
Lululemon
Lumine
Luxottica
Mami Mart
Marubeni
Maruetsu
Marui
Mash Holdings
Matsumotokiyoshi
Matsuya
Maxvalu Kanto
Medipal
Melrose
Milk
Ministop
Minnetonka
Mirari Japan
Mitsubishi Estate
Mitsubishi Shoji
Mitsui Bussan
Mitsui Real Estate
Mori Building
Muji
Mycal
Nagasakiya
Nippon Access
Nitori
Nojima
NTT Docomo
Odakyu Railways
Oisix
OK Super
Parco
Paypal
Qol
QVC
Radishboya
Rakuten
Ray-ban
Rizap
Ryohin Keikaku
Sanyo Shokai
Seibu
Seicomart
Seino Transport
Seiyu
Senshukai
Seven Eleven Japan
Seven Net Conbini
Shicata
Shimamura
Softbank
Sogo Medical
Sogo Seibu
Start Today
Stripe International
Sumitomo Shoji
Summit
Sundrug
T-Point
T-Site
TakaQ
Takashimaya
The Outnet
Tokyu Corp
Tomods
Topvalu
Topwin Japan
Toshin Kaihatsu
Trial Company
Tsuruha
Uniqlo
United Arrows
Uny-Familymart Holdings
USMH
Valor
Welcia Holdings
Wondercorp
Yahoo
Yamada Denki
Yamazaki Bread
Yaoko
Yodobashi Camera
York Benimaru
Zara
Zozo