May 2025 Issue

Trust in Muji reaps big returns

Muji continues its impressive growth streak both at home and abroad – sales in March alone rose 33% in Japan. As well as hit items in categories like cosmetics and homeware, Muji has improved supply chains and logistics, while also moving into new categories. The latest, with significant potential given inbound demand, is Muji Stay which includes its own hotels, rooms in other hotels and inns, as well as house rentals on Airbnb.

Editorial: Dissolving boundaries

Matsuya’s record sales may signal peak for sector

Matsuya had a terrific FY2024, posting a new sales record at its Ginza store, the first since 1992. As with the department store sector overall, there are worries that this year or next will be the peak given the ongoing decline in sales to locals, and if a strengthening Yen puts paid to tourist largesse.

Stripe International: still aiming for an IPO

Stripe International has seen its sales collapse by more than half and its founder hounded out of office for sexual harassment, but in the hands of a former shosha executive, the fashion retailer is slowly rebuilding a more stable foundation, aiming for the IPO its founder had always yearned for.

Trial: ‘Japanese retail costs 25% too high’

As confirmed last month, Trial will acquire Seiyu later this year, giving it access to 240 more stores to add to almost 350 already in operation, along with new processing and logistics capacity. The prospect of combining Trial’s undeniable knowhow in retail tech and its laser-focused concern with reducing costs could cause rivals serious problems.

Rice prices still causing concern

Although there is plenty of rice in the shops, prices continue to increase even after the unprecedented release of government stockpiles.

Magaseek and Locondo stall

Jade made some wild promises about its potential to grow its online fashion mall business last year when it acquired Magaseek, but recent results suggest what many feared: building scale without due regard for the quality of the assets acquired does not an empire make.

Ecute Akihabara goes cashless

JR East opened Ecute Akihabara last month, the first entiely new, full-sized Ecute to open in the past 15 years. The new in-station mall features restaurants and shops aimed at men and tourists, and introduces new digital ways to interact with the stores.

A busy BAPE

A Bathing Ape has come a long way since its modest launch in Harajuku in 1993. After quickly becoming the face of the Ura-Harajuku streetwear boom, the brand expanded overseas and is now emerging as one of the leading premium Japanese fashion brands, with loyal fans overseas as much as at home.

Conbini winning by adding value

The four largest convenience stores all had varying results last year, two setting records for high profits, and the other two seeing worrying shortfalls. The biggest differentiating factor was how each handled the problem of inflation, either through lower prices or by offering added value.

Valor responds to Trial-Seiyu threat

After seeing Trial acquire Seiyu, Chubu-based supermarket group, Valor, has announced it will expand into other regions too, accelerating its plans by two years. It hopes to take advantage of the current disruption happening in the supermarket sector.

Zozo expands overseas with Lyst

Zozo’s purchase of UK mall Lyst will create significant synergies, allowing Zozo to build a strong base in Europe and the US and allow brands from Japan to sell overseas easily, while also potentially making it simple for European and US brands to sell into Japan.

FOCUS

Who owns Who: The growing concentration of power in Japanese consumer markets

Consumer goods distribution has been transformed since 2020 by an acceleration in concentration of market share. While some of this has come about through organic growth, the real drivers have been M&A and MBOs – particularly delistings. The result has been a radical realignment of the retail leader board as companies like PPI, Welcia and Trial buy their way to the top, rationalising their acquisitions as they go, while others, notably Seven & I, shrink as under-performing formats are hived off. The net effect, combined with the power of these newly consolidated groups’ private brands, is intensifying pressure on both smaller retailers and the wholesalers that supply them.

Retail Data: Department stores fall again

IN BRIEF

30% use Shein and Temu in Tokyo

Barcodes: a simple answer to archaic logistics

Record sales for TMD’s West Tokyo malls

Jupiter Shop Channel opens in Marui

Record sales at Karuizawa Prince – again

Narita hopes for new runways in 2029

2nd Street surpasses 1,000 stores

Aoyama Shoji launches popup store for women

Air Closet launches analysis service

Marubeni unveils consumer brands platform

48 new large store applications

Sfida attracts funding

Aeon to expand cool spots this summer

Onward’s online sales up 9.2%

Goldwin nature park on track for 2027

Sleep buses make debut

Yamato expecting sharp drop in profits

Aoki ups work-life balance with more holidays

Levi’s opens major store in Nagoya

Hankyu Hanshin converts another store

Prices push consumers away from domestic fruit

Yamada Denki opens first airport store

Beams targets US market

Yamagataya restructuring brings new tenants

Asics collaborates with A.P.C.

Aeon opens fashion rental flagship in Harajuku

Companies and Brands in this Issue

AAPE, 10
Adastria, 1, 22
Adidas, 10
Aeon, 6–9, 12–13, 16–22
Aeon Delight, 19–20
Aeon Mall, 9, 19
Aeon Market, 14–15, 20
Aeon Retail, 1, 7–8, 14–15, 17, 19–20
Ain, 14–16, 19
Air Closet, 7
Airbnb, 1, 3
Akachan Honpo, 14–15, 21
Akidai Marudai, 14–15
Albis Kurashi, 22
Alpine Tour, 9
Amazon, 17, 21
American Holic, 5
Amu Plaza, 23
Aoki Holdings, 11
Aoyama Shoji, 6
Arcland Sakamoto, 17
Arcs Bellejois, 14–15
Askul, 1, 21
Atmos, 10
AXN, 14–15
Bain Capital, 14–15, 18
BAPE, 1, 10
Beisia, 21
Benetton, 8
Bic Camera, 12
Cainz, 16–17, 21–22
Can Do, 20
Canada Goose, 10
CGC, 21–22
Chubu Yakuhin, 14–15
CIS, 6
Cocokara Fine, 14–16
Coop Kobe, 22
Coop Sapporo, 22
Cosmos Yakuhin, 8
Cowboy, 6
Credit Saison, 19
Daiki, 16
Daimaru, 1, 4
Daiso Sangyo, 22
DCM, 14–17, 20
Do Arcland, 16
Don Quijote, 6–7, 17
Drug Eleven, 20
EBay, 13
Ecute, 1, 9
Edion, 16
Familymart, 11, 17–18
Far Fetch, 13
Fashionwalker, 9
Fast Retailing, 17
Fortress Investments, 16
Fuji, 19
Genky Drugstores, 12
Geo Holdings, 6
Goldwin, 9
Grandberry Park, 4
Green Beans, 20
GU, 11
H2O, 14–17, 21–22
Hacobu, 3
Hankyu Hanshin, 11
Hapycom, 19, 22
Heiwado, 22
Homac Daiki, 14–15
Ikka, 11
Inageya, 19, 21
Isetan, 1, 14–15, 17
Ishii Sports, 14–15
Itochu Shoji, 8, 14–15
Itochu Shokuhin, 14–15
Izumi, 17, 21
Izumiya, 17
Jade Group, 8–9, 14–15
Japan Post, 10, 20
JCB, 19
Jins, 11
Joyful Sun, 21
Jupiter Shop, 4, 14–15, 18
Kahma, 16
Kansai Supermarket, 14–15, 17, 22
Karuizawa Prince, 5
Kasumi, 19
KDDI, 11, 14–15, 18
Keiyo Sunday, 14–15
Kintetsu, 21
Kitano Ace, 13
KKR, 6–7, 18
Kohnan Shoji, 18, 22
Kojima, 18
Kokubu, 18
Lawson, 11, 17–18
Levi Strauss, 11
Life Corp, 14–15
Locondo, 1, 8–9
Lopia, 17–18
Lowya, 4
Luluti, 13
Lumine, 6
Lyst, 1, 13
Magaseek, 1, 8–9
Marubeni, 7, 18
Marudai, 18
Maruetsu, 19–20
Marunaka Shoji, 16, 19
Matsukiyo Cocokara, 17
Matsuya, 1, 4–5
Matsuzakaya, 1, 4, 14–15
Maxvalu Hokuriku, 20
Maxvalu Kanto, 19
Maxvalu West, 16, 19
Ministop, 11, 20
Mitsubishi Shoji, 14–15
Mitsui Bussan, 19
Muji, 1, 3
My Basketo, 20
Nafco, 8
Narita International, 5
Nichiryu Kurashi, 22
Nippon Access, 14–15
Nissen, 18
Nitori, 1, 3, 14–17
OIC, 14–18, 22
OniGo, 14–16, 19, 21
Onward Holdings, 9
Otsuka Kagu, 17
PPI, 6, 16–18, 22
Qoo10, 13
QVC, 14–15, 18
Rakuten, 20–21
Reebok, 8–9
Sanrio, 10
Save On, 14–15
Seibu Properties, 5
Seicomart, 21
Seiyu, 1, 6–7, 12, 17–19, 21
Seven Bank, 19
Seven Eleven, 7, 11–12, 14–15, 18–19, 21–22
Sfida, 8
Shein, 3
Shimachu, 17
SNSA, 14–15, 22
Sotetsu Rozen, 14–15, 18
Stripe Holdings, 5
Stripe International, 5
Sumitomo Shoji, 14–15
Sundrug, 16
Temu, 3
Topvalu, 20–21
Trial Seiyu, 6
Tsuruha, 1, 14–17, 20
Uniqlo, 1, 3, 5
United Arrows, 1, 4
Uny, 14–15, 17–18
USMH, 14–16, 19–20, 22
Valor Holdings, 12
Wego, 9
Welcia, 16–17, 19–22
Yamada Denki, 8, 12, 14–15
Yamato Holdings, 10
York Benimaru, 14–15, 22
Zozo, 1, 9, 13