February 2025 Issue

FOCUS: Shopping Malls 2025: robust sales, fewer doors

To give a clearer view of the state of play in the shopping mall sector, the winners and losers and where things are heading, we are providing a review of each main data point in this focus. The number of new developments in 2024 held steady but will collapse in 2025 due to higher costs, lower demand and a real paucity of labour to operate stores. At the same time, for existing malls, sales were robust through 2023 and 2024 and look set to continue at higher levels despite consumer restraint. Both locals and tourists alike use malls for leisure, entertainment and shopping for treats and, as the net number of malls falls, and investment in upgrades continues, mall shopping remains an appealing option for most.

Crooz sells online mall business to Korea’s Nugu

Crooz’s Shop-list.com used to be one of the fastest growing online fashion malls in Japan but, just before Covid, it hit a wall and hasn’t recovered since. Now it will be merged with Korean fashion mall, Nugu, and its real value as a database of young female consumers will become clear. This should help Nugu grow to GTVs of ¥100 billion from Japan alone.

Editorial: You have to love tourists

Decathlon stores returning to Japan

After running a buying operation for materials from Japan for decades, Decathlon has been hovering around the retail market for a while, first through wholesale, then an online store and, eventually physical stores, but it quickly retreated. Now it is back with a new strategy centred around its powerful store brands.

Seven & I restructures but discontent rises among franchisees

Seven & I finalised plans for its group restructuring last month, with York HD due to take over operation of all group business except Seven Eleven at the end of February. Meanwhile, Seven Eleven itself continues to struggle against its rivals as customers see the chain as too expensive. Now even franchise owners are becoming critical.

United Arrows expanding again

United Arrows spent a few years in retreat as a succession of problems around e-commerce, Covid and merchandising hit sales, and so was overshadowed by the likes of Baycrews and Mash HD. It now says backend fixes are complete and it is starting to expand again, with new chains and target segments, both at home and overseas.

Nitori makes live commerce work

Nitori is fast becoming a true omnichannel retailer with fast growing e-commerce and sophisticated integration across channels. One of the most important and successful of these is its use of live commerce broadcasts through a dedicated app.

New efficiencies and modernisation in consumer goods shipping

Despite almost a year passing since the new rules on driver overtime came into force, transport companies and their customers are still coming up with ways to keep within the new regulations. Seino, one of the largest trucking companies, has consolidated its regional subsidiaries and plans to open new regional hubs to reduce route distances. Others will do the same and more collaborations are likely, lowering costs and improving efficiency for consumer distribution.

LVMH affiliate buys into Japan brand, Kapital

LVMH and its affiliates continue to expand involvement in the Japanese market through direct investment. L Catterton has acquired a stake in the cult Japanese fashion brand, Kapital, while LVMH Métiers d’art will hold its Artist in Residence programme in Japan for the first time, with a young Japanese artist.

Popularity of gig work rising

Life-long employment was always a myth for the bottom 90% of businesses but now even full-time employment is under threat as more people and businesses use gig work to meet their needs, particularly in sectors like fulfilment centres and retail.

Asics aims even higher

Asics continues to post record results on the back of strong sales of both performance footwear and lifestyle merchandise. It now expects average sales growth of 10% a year and profits of ¥130 billion in FY2026.

World buys Mitsubishi clothing business

World may finally have found the key to real growth. For years it has tried to build a fashion retail business in shopping centres, but with limited success as it didn’t have the supply chain skills to compete with the big retailers like Uniqlo and Adastria. Buying the supplier that helped grow those same rival chains means World now has a real chance to enter the big leagues. The sale also signals the end of big trading firm involvement in clothing retail – with only Itochu left in the game.

More frozen food demand in 2025

As households continue to face pressure from rising prices, many are turning to convenience products such as frozen foods and ready-meals as they spend more time working in order to make ends meet. Supermarket buyers also expect growth in oral care products as people become more concerned with health.

Department store sales higher than pre-Covid 

That department stores in city centres did well in 2024 won’t be a surprise to anyone but that the sector overall managed to exceed 2019 sales is an achievement given the ongoing contraction in the regions.

Retail Data: Malls up 5.3%, department stores 2.8%

IN BRIEF

Muji to open 8,500 sqm store, raises forecasts

Cartier flagship on Gap site in Ginza

Premium chocolate Market set to grow

LY acquires Beenos

Tokyo Used apartments average ¥110m

Yutori buys Minum cosmetics

Tokyu to redevelop Sengakuji Station

Damiani looks to expand again

32 large store applications in November

Mizuno invests in flagship

Custom suits continue to boom for Sada

Jun showcases Korean brands

Tokyu confirms Gotanda development for 2027

higher wages expected

Food delivery mistakes on the rise

Komeri introduces disaster protection for pets

Container hotel in Chiba

Mom’s Touch hamburgers to open 30 locations

FamilyMart goes luxury with Pierre Hermé sweets

Firms offer incentives to retain staff

IKEA to open new Yokohama store

Few female CEOs

Yahoo offering insurance for return shipping fees

Rakuten expands netsuper service area

Brands and Companies in this Issue

Adastria, 1, 7, 11–12
Aeon, 3, 14, 20
Alpen, 3
Baccarat, 6
Bangai, 16, 18
Baycrews, 6, 11
Beenos, 4
Birkenstock, 9
Boots Black, 6
Buyee, 4
Cainz, 7
Cartier, 3
Celeo Hachioji, 16, 18
Century Denim, 9
Chanel, 12
Circana Japan, 10
Cosmos Yakuhin, 6
Crooz, 1, 3
Daikoku Bussan, 6
Daiwa House, 17
Damiani, 6
Decathlon, 3
DecoHome, 7
Diadora Cena, 8
Don Quijote, 12
Dongdaemun Market, 1
Etro, 9
Familymart, 4–5, 11–12
FamiPay, 5
Fast Retailing, 11–12
Gap, 3
Glico, 4
Godiva, 4
Groobee, 4
Hankyu Hanshin, 17
Heiwado, 7
Hermes, 12
Hysteric Glamour, 9
IKEA, 12
Isetan, 1
Iten, 3
Itochu Shoji, 6
Jan Feb, 22
Jun, 8, 21–22
Kao, 9
Kapital, 9
Karuizawa Prince, 16–17
Kashihara, 3
Katakura Industries, 17
Kato Sangyo, 9
KDDI, 5
Keikyu, 6
Kiprun, 3
KKR, 4
Kurashiki, 9
Kuroki, 9
Lalaport, 19
Lawson, 1, 4–5
Laxus, 12
Loft, 4
Louis Vuitton, 9, 12
Lumine, 6, 20
LVMH, 9
Magaseek, 1
Marui Family, 18
Mash Holdings, 6
Matsuya, 1
Mediquitous, 1, 3
Megabass, 9
Mercari, 10
Minum, 5
Mitsubishi Estate, 18–19
Mitsubishi Shoji, 11–12
Mitsui Bussan, 12
Mitsui Fudosan, 14–15, 17–20
Mizuno, 7
Muji, 1, 3, 11
Nike, 11
Nippon Shuppan, 3
Nitori, 1, 7
Nugu, 1, 3
Onitsuka Tiger, 11
Onward Holdings, 12
OPA, 20
Parco, 3, 19–20
Pierre Marcolini, 4
Ponta Pass, 5
Quechua, 3
R9, 10
Rakuten Mart, 13
Richemont Group, 3
Ryohin Keikaku, 3, 12
Sada, 7–8
Seino, 8–9
Seven Eleven, 4–5
Shell Garden, 4
Shoplist, 1, 3
Sojitsu, 18
Sports Authority, 3
Staff Start, 7
Suica, 5
Suzuyo, 8–9
Takashimaya, 1, 4
Timee, 10
Tokyu, 17–18
Toshin Kaihatsu, 17
Tsuruha, 1, 5
Uniqlo, 1, 7, 11–12
United Arrows, 1, 6–7, 11
Workman, 1, 3
Xebio, 3
Yahoo, 4, 10, 13
York Benimaru, 4
York Holdings, 4
Yutori, 5
Zozo, 1, 4