April 2025 Issue

FOCUS

Japanese consumer spending: growing resilience in the face of ongoing inflation

Japanese consumers have had a rough ride in recent years, not dissimilar to their peers in many other markets. But here consumers are less used to persistent inflation and adapting to it has resulted in important changes in behaviour, notably cutting back on other essentials to pay for the spiralling cost of food and looking for lower prices at discount stores. On the other hand, persistent wage growth is also new and, while too much of these increases have been stuffed under the mattress, spending on treats continues.

Trial purchase of Seiyu creates new retail power

Until last year, Trial was a Kyushu-based discount FMCG retailer, that had just completed its IPO. Today, it is one of the largest FMCG retailers in the country having won the bidding to acquire Seiyu from foster care under KKR. This is a massive development that will pressure other rivals to step up in order to compete.

Editorial: Non-working wealthy skew data

Meitetsu confirms closure

Until quite recently, Nagoya had seven department stores but will soon have just four following Meitetsu’s decision to close its flagship store to clear the way for a major redevelopment of the station area. The new development will include retail and so bring some competition to Takashimaya, which now dominates department store retailing in the city, but not before 2033.

Tokyu revamps retail business

Tokyu may have just sold off its Tokyu Plaza building in Ginza but it is determined to invest in new and upgraded retail facilities along the main Tokyu railway lines over the next decade, and will merge its retail businesses into a more efficient, centralised core to make this happen.

Adastria: ¥500 billion through new brands – signs UK’s Karrimor

Adastria (soon to be And ST) is Japan’s biggest multi-chain clothing retailer and fourth largest overall. As well as investing in core brands like Global Work, the former wholesaler is now expanding through new segments – including Forever 21 despite its US bankruptcy – and has also just acquired the rights to UK outdoor brand, Karrimor.

iStyle ups investment in retail

iStyle continues to benefit from its focus on omnichannel retailing. Customers who use both its online and physical stores spend 1.5 times more than those only shopping online, and it has just unveiled an updated flagship store with target sales of ¥10 billion.

Tabio: more socks

Tabio is the biggest retailer of hosiery in Japan but after a decade of stagnant growth, it now has plans to grow e-commerce, men’s sports lines through licenses such as with FC Barcelona, and expansion overseas.

Seven & I: ACT is impatient

The Seven & I versus ACT saga drags on with both sides trying to justify frustration with the other. ACT’s position remains largely unchanged while Seven & I has appointed a new CEO, restructured its entire business, and begun plans to sell off 2,000 stores in the USA and, possibly, discuss selling the US operation to ACT.

Wolt targets regions to survive

Wolt, the food delivery company, is now only the fourth largest in the industry while others have pulled out altogether. To compete, Wolt is hoping to beat larger competitors in regional markets.

Aeon to absorb Aeon Mall and Aeon Delight

Aeon will turn Aeon Mall and its facilities management business, Aeon Delight, into subsidiaries as part of plans to rationalise and inject new momentum into its shopping building business, including new types of neighbourhood mall. It will also use Aeon Mall’s overseas network to scout for promising tenants for its malls and GMS stores.

Qoo10 surges on K-Style boom

Qoo10 is tiny in comparison to Amazon, Rakuten and Yahoo but it punches well above its weight by specialisation. The online mall’s focus on Korean cosmetics and lifestyle has given it a depth of loyalty among young women that was once the preserve of Zozo.

Major growth expected in foodtech

Given Japan’s growing interest in food-based health solutions, multiple players are looking to build businesses in the field across gut health and dietary solutions for the old and infirm.

Retail Data: Department stores trending down again

IN BRIEF

Itochu and United Arrows sign Korea’s Nice Weather

Mitsui launches online outlet mall

Coccinelle to open four popup stores

Ito-Yokado opens toy store in Harajuku

Yahoo Shopping to boost marketing

Decathlon opens second store – as Decathlon

Saucony opens first directly managed store

Tokyo Base opens Studio Tokyo flagship

Odakyu to open mall in former school

First York HD store opens

Columbia to open large flagship in Harajuku

Rice price doubles, overtaking bread

New small packets to boost Japan Post share

Cole Haan opens first major store in Kansai

Tokyo Tatemono Tofrom Yaesu to open in 2026

Esio opens in 109 offering “sophisticated mischief”

Zozo same-day delivery now in 40 prefectures

37 large store bids, 9 from Kusuri no Aoki

The North Face boosts shoes at Shibuya popup

Supermarkets & GMS sales continue to rise

GU launches UG by Jun Takahashi

Welcia to offer subscription services

Lopia offering barbecue facilities

Plaza signs Japan deal for Happy Socks

Electronics retailers to collaborate on logistics

Brands and Companies in this Issue

Achilles, 6
Adastria, 1, 4, 6–7
Adoorlink, 7
Aeon, 1, 3, 10–12
Aeon Delight, 1, 10–11
Aeon Mall, 1, 10–11
Aeon Retail, 1, 11
Akachan Honpo, 7
Altra, 5
Amazon, 12
Amu Plaza, 21
Authentic Brands, 6–7
Bain Capital, 7
Belc, 11
Benimaru, 7
Bic Camera, 13
Body Granola, 13
Calbee, 13
Care Capsule, 12
Chubu Yakuhin, 11
Coccinelle, 4
Cole Haan, 9
Columbia Sportswear, 7–8
Cosmos Yakuhin, 10
Costco, 3, 9
Couche, 9
Crooz, 12
Daiichi Cargo, 13
Daimaru Matsuzakaya, 21
Decathlon, 5
Didi Food, 10
Direx, 10
Don Quijote, 1, 3
EBAY, 13
Edion, 13
Esio, 9
Familymart, 3, 11
Fang Camo, 12
Fast Retailing, 7
Food Panda, 10
Fuji, 1
Fwee, 12
Genky Drugstore, 1
Giosis, 12
Global Work, 6–7
Goldwin, 11
Good Edition, 6
Goody Harajuku, 4
Grand Green, 9
Green Eye, 11
GU, 12
Hankyu, 1
Hankyu Hanshin, 21
Happy Socks, 13
Hello Kitty, 4
Hitachi, 13
Inner Garden, 13
Isetan, 1, 5
Isetan Mitsukoshi, 21
Itochu Shoji, 3, 6
Izumi, 1
Joinus, 21
Joshin Denki, 13
Jun, 16, 21–22
Kameda Seika, 13
Kansai Store, 3
Karrimor, 6–7
Kiprun, 5
KKR, 1, 3
LacuS, 13
Lalaport, 3
Life Garden, 11
Locondo, 12
Loft, 7
Lopia, 12
Lucua Osaka, 21
LVMH, 5
LY, 4–5
Magaseek, 12
Marubeni, 5
Maruzen, 11
Matsuya, 1, 5
Matsuzakaya Nagoya, 4
Mediquitous, 12
Meitetsu, 1, 4–5
Mitsui Fudosan, 3
Mitsukoshi, 1, 5
Naigai, 8
Nice Weather, 3
Nitori, 1
Nugu, 12
Odakyu Railway, 6
OIC, 12
Oisix, 13
Panasonic, 13
Peach John, 7
Plaza, 13
PPI, 3
Qoo10, 1, 12–13
Quechua, 5
Rakuten, 12
Sagawa Express, 5
Salomon, 5
Saucony, 5
SBA, 6–7
Seiyu, 1, 3, 9
Seven Eleven, 3, 9
Shibuya Parco, 10
Shimamura, 1, 11
Shoplist, 12
Sony, 13
Sports Authority, 7
Studio Clip, 6–7
Studious, 6
StylingLife, 13
Sundrug, 10
Tabio, 1, 8
Takashimaya, 1, 4–5, 21
TikTok, 13
Time Out, 9
Tofrom Yaesu, 9
Tokyo Base, 6
Tokyo Tatemono, 9
Tokyu, 1, 5
Topvalu, 11
Toylo Mart, 4
Trial Holdings, 1
Tribord, 5
Uber Eats, 10
UG, 12
Uniqlo, 1
United Arrows, 1, 3
Valor, 1, 11
VF, 5
Wacoal, 7
Walmart, 3, 9
Welcia Holdings, 12
Wolt, 1, 10
Wolverine Worldwide, 5
Workman, 1
Yahoo Shopping, 4, 12
Yamada Denki, 4
Yamato Transport, 10
Yohji Yamamoto, 6
York Benimaru, 1, 7
Zetton, 7
Zozo, 7, 10, 12