December 2024 Issue

FOCUS:

E-Commerce growth in face of logistics pressures

Japan’s e-commerce channel continues to grow faster than any other and it is on track to overtake GMS/supermarkets as the largest channel in 2026-27. It continues to be dominated by the three big online malls, but increasing numbers of retailers, both traditional and pure play online, are developing independent businesses and growing strongly. High Street retailers, meanwhile, are choosing to adopt omnichannel and online-offline methodologies to best leverage their investment in physical stores while reaching customers at all points of their journey.

Workman under pressure

Workman was a purveyor of reliable and durable gear for workers in tough jobs like construction but then had the brilliant idea to transpose this expertise to create equally tough and functional activewear for consumers. This was working well until it decided to take on the likes of Fast Retailing and Shimamura by moving into casual clothing. Was that a good move?

Editorial: E-commerce done right

Yahoo Shopping up 4.2%, Rakuten down 5.5%

There’s been something of a reversal of fortunes in online shopping malls, as Yahoo Shopping regains some of the losses of the past 18 months while Rakuten suffers a setback, but both expect further gains going forward from more cross-use and expansion of categories, including a new tie-up between Rakuten and Nihon L’Oreal.

Tokyo: 3.5 million singles by 2050

By 2050, elderly people will make up more than 40% of greater Tokyo’s population and a consequence of this ageing is accelerated growth in single person households. This clearly defined, less mobile, mostly retired population will have a profound impact on consumption patterns. At the same time, Tokyo and the rest of Kanto, will be the only area to see a net increase in population, with everywhere else contracting significantly.

Seven Eleven too expensive?

Never known as a cheap retailer, Seven Eleven’s pricing is putting off customers more than ever now that inflation is a thing in Japan. Its recent sales performance lags behind its two main competitors and it faces new competition from drugstores and others. The chain needs to act quickly to stem the decline in footfall and same store sales.

OK Super opens in Kansai

OK Super opened its first store in Kansai in November with a second already due in January and at least one more by the end of 2025. More than 300 people queued to get into the supermarket and OK’s EDLP strategy is certain to prove a hit with customers in the region.  Competitors are worried.

ABC Mart forges further ahead of competitors

The disparity between the leading footwear retailers continues to widen. ABC Mart is pulling so far ahead that it has the market almost to itself. Chiyoda may have finally turned the corner but G-Foot may need further financial support from Aeon.

KDDI’s Ponta delivers real consumer insights

The Lawson-KDDI tie-up has potential to leverage the massive data flows across a large, physical store chain with millions of transactions a day, and those of a leading technology firm with millions of users across finance, consumer goods and apps. The result is a fascinating insight into the minds of today’s consumers – but it is not all happy reading, detailing bleak consumer sentiment in the face of higher prices.

Isetan Shinjuku to hit ¥424 billion

Isetan-Mitsukoshi has gone from being the most cautious forecaster among the big department store retailers to the most optimistic, on the back of previously unimaginable sales records at its main stores, especially Isetan Shinjuku. All of which is bringing in piles of profit, with projections of exceeding its previous average profit by four times.

Japan warming to Black Friday sales

November is not a strong month for many retailers, so adopting Black Friday promotions from the US has growing appeal. In addition to Amazon and Costco, which have done the most to proselytise the event, this year most larger retailers expanded discounts for Black Friday, but the overall scale remains fairly limited and, for the most part, discounts focus on food and every day household items.

Matsuya targets ¥20 billion online

Department store sales to locals plummeted in October, resulting in the first decline in 32 months. While sluggish clothing sales was one factor, another was crowded luxury concessions putting off locals from visiting. Matsuya thinks it has the answer: keeping locals and tourists separate using a new online store.

60,000 sqm NEWoMan in Takanawa

A huge new property development will form the basis of a new hub at Takanawa Station, anchored by a major new shopping and entertainment facility run by Lumine under the NEWoMan banner.

Retail Data: Department stores down for first time in 32 months

IN BRIEF

Hosiery brand Fogal back in Japan

New H&M store in Kobe, upgrade for Cos

Mitsui Fudosan launches Omni-Service Platform

Lawson store emulates SIP

Opening in 2025, willRandy’s have its donut?

Beams launches new concept Beams Life

PayPay hits 66 million users

Osaka Maru Biru to be rebuilt

Larger retailers target tourists

TSI to sell Rose Bud to B’s International

Yamato to end fulfilment service on Yahoo Shopping

Hasegawa’s altArs for celebrity worship

Seibu launches food sales at stations

Itochu grabs Kolor

Adastria offers loans on online store

Amazon pledges further investment in Shizuoka

30% of companies building alumni networks

Second store for Canadian brand Mackage

Hiroshima to get new 160m tower in 2027

Life to expand Bioral private brand

Regional prefectures struggle to keep young people

Sogo Seibu opens new gift centre for o-Seibo season

Yahoo Quick Mart expands to 43 prefectures

Familymart tries to reduce plastic use

Brands and Companies in this Issue

Acom, 9–10
Adastria, 1, 9
Aeon, 8–9, 12, 16, 18
Akachan Honpo, 13
Amazon, 10, 12, 14–15, 18, 21
Apple Vision, 4
ASBee, 9
Askul, 1, 18
B4F, 13
Beams Japan, 6
Beisia, 15
Bic Camera, 7, 17
Bioral, 11–12
Borsalino, 3
Carrefour, 7
Cawachi Yakuhin, 1
Cedar Crest, 9
Chiyoda, 1, 8–9, 11
Comedi Iida, 15
Coronet, 9
Costco, 12
Creaitech, 5
Creema, 21
Daiso, 6–7
Daiwa House, 6
Danner, 8
Decathlon, 1
Dell, 17
Don Quijote, 7
Edion, 17
Familymart, 6, 10
FamiPay, 10
Fogal, 3
Futureshop, 21
Genie, 9–10
Green Beans, 16
GU, 3, 18
Haeres Equita, 3
Hankyu, 1
Hasegawa, 8
Hunting World, 9
Inageya, 15
Isetan, 1, 8–9, 11
Ishii Sports, 17
Itochu Shoji, 13
Junichi Abe, 9
KDDI, 1, 10
Kojima, 17
Kolor, 9
Komeri, 1
LaLaport, 4
Lanvin, 9
Lawson, 4, 10, 13
Life Corp, 11
Locondo, 21
Lohaco, 21
Lumine, 13
Mac House, 8–9, 11
Mackage, 11
Magaseek, 21
MakeShop, 21
Maruetsu, 13
Matsuya, 1, 6, 13
Matsuzakaya, 1
Mercari, 21
Mila Schon, 9
Milleporte, 13
Mitsui Fudosan, 3
Mitsukoshi, 1, 9, 11
Money Lamp, 10
Mouret, 9
Mr Donuts, 5
Nanaco, 10
Nissin Foods, 11
Nitori, 1, 11
OniGo, 16
Osakaya Shop, 15
Picard, 13
Ponta, 1, 10
Qoo10, 21
Rakuma, 21
Rakuten, 1, 4–5, 10, 14–15, 18, 21
Randy, 5
Rose Bud, 7
Sazaby League, 8
Seijo Ishii, 7, 15
Seiyu, 15
Seven Eleven, 1, 6–7, 10, 21
Shopify Japan, 4
Softbank, 10
Sogo Seibu, 12
Staff Start, 16
Takashimaya, 1, 12
Tokyu, 12
TSI, 7
Tsuruha, 1
Uniqlo, 1, 3, 18
United Arrows, 1
Valor, 15
Wolt, 21
Workman, 1, 3
Xebio, 21
Xgirl, 7
Yahoo Shopping, 1, 4, 7, 21
Yamato Transport, 7
Yodobashi Camera, 17–18
Zeon Shoji, 11
Zozo, 4, 9, 18