July-August 2025 Issue
Japan’s demographic crisis worsening fast
The convergence of accelerating population decline, severe labour shortages, and evolving attitudes toward marriage and family has created a perfect storm, making it the number one concern for businesses according to multiple recent surveys, and even resulting in record bankruptcies. Recent data suggests the situation is progressing 15 years ahead of what the government previously considered the most likely scenario. The implications for consumer markets are profound.
Editorial: Societal pressures force innovation
Cronos crowns fast growth with flagship store
Home-grown sports brands continue to outperform, including smaller, less well-known brands like Cronos.
Don Quijote: fitness, tourists and social media
Don Quijote announced a slew of initiatives over the spring targeting tourists, a move to capitalise on the burgeoning fitness boom, and new social media use.
A glimpse of the future: Seibu Ikebukuro opens cosmetics floor
Seibu Ikebukuro will begin the process of reopening this month after delays related to the age of the building. Owner Fortress Investments is hoping that a new focus on cosmetics and luxury brands will generate sales levels similar to those prior to the rebuild, even though sales space will be reduced by around half.
Japan’s rice crisis: stockpile release and foreign rice
Government stockpiled rice finally hit the shops in early June at prices about half the average seen in May. Top retailers all leapt onto the bandwagon, with many selling out their initial allocations within days – and some within minutes. The crisis response has shown up inefficiencies and price gauging in the wholesale channel.
United Arrows plans 15 stores for Korea’s Nice Weather
United Arrows is best known for building its own chains but now believes it can take a leaf from the playbook of Mash Holdings by signing promising overseas brands as a way to accelerate growth.
Tourists save Seven Eleven
While Seven Eleven has had a rough 18 months due to locals seeing it as too expensive, resulting in lower same-store sales, tourists have no such concerns, and the retailer has been pulling them in with dedicated corners for travellers. Meanwhile, Ministop is emulating Seven Eleven’s SIP stores.
Kuipo: more foreign brands please
The polarisation of the bag market between luxury and mass market has left the local premium market reeling. Kuipo, one of the market leaders, has fought back, creating a mix of its own brands and imported labels. It now wants to create the first Japanese luxury bag brand while also diversifying its portfolio by signing more overseas brands.
Oisix pushes convenience deli
Oisix is Japan’s largest online food retailer, having moved from food subscription boxes to meal kits, but it has now decided that its busy and stressed customers no longer want to spend 20 minutes cooking its meal kits. Instead, the future is 5-minute deli meals.
The North Face surpasses ¥100 billion but faces headwinds
Goldwin had a solid year last year thanks to its license for The North Face, but there are now headwinds. Inbound tourist support is falling away, and the push into footwear has not offset weakness elsewhere, but the Goldwin brand is beginning to establish strong foundations in China.
Lopia scares regional supermarkets
Just as OK Super did when it opened in Kansai last year, Lopia’s entry into the Hokuriku market in May is likely to create headaches for incumbent competitors, another example of the power of the new discount leaders.
FOCUS:
Retail Sector Review 2025: Patchier growth
Retail sales reached ¥165.37 trillion in FY2024-25, but growth slowed and lagged behind inflation for many retailers. FMCG retailers remained dominant and market concentration increased, with top firms expanding through consolidation. Discounters, drugstores and e-commerce outperformed the market overall, while general merchandise stores and apparel/lifestyle declined. Profitability varied significantly, but discounters stood out as consumers flocked to their stores to escape inflation where they could.
Retail Data: Tourist sales tumble 41% at department stores
IN BRIEF
Columbia Tokyo Flagship opens
Mitsui Kisarazu aims for ¥85 billion in sales
Nihonbashi Riverwalk unveiled
Rapid freezing technology becoming mainstream
Emporio Armani flagship opens in Ginza
Scroll recovers
New Yokohama development in 2027
Maison de Sabre opens Japan store
Baby and childrenswear market holds steady
Tiffany’s new flagship in Ginza
Itochu sells blemished bananas
On in Ginza
Parco Shibuya enjoying tourist boom
Seven & I reduces stake in Seven Bank
IKEA to open first store in an Aeon Mall
Haagen-Dazs releases limited-edition ice creams
Women save money on travel
Askul opens Kanto DC
Ehime Prefecture analyses tourists
Self-driving trucks for beer
Confectionery prices continue to rise
Ito-Yokado success from directly run central deli kitchen
34% of seniors in Tokyo shop online monthly
Rakuten Mart adds regional delicacies
Inflation surges again
Brands and companies in this Issue
Adastria, 1, 20–22Aeon, 7, 10, 12–14, 19–21Ageo, 10Alpen, 18, 20, 22Amazon, 7, 18, 21Anna Sui, 11Arclands, 13, 20–22Asahi Beer, 11Askul, 1, 10, 20–22Autobacs Seven, 22Axial Retailing, 13, 20, 22Beisia Group, 19Belc, 18, 20Belluna, 21–22Benetton, 11Bic Camera, 19–22Bookoff Group, 22Burberry, 11Cainz, 14, 19, 21–22Columbia Sportswear, 3Cosmos Yakuhin, 19, 21–22Cronos, 1, 4Daichi, 12, 18, 20–22Daiei, 20Daikokuten Bussan, 22Daimaru Matsuzakaya, 20Daiso Sangyo, 19Dazs Japan, 9DCM, 14, 19, 21–22Dior, 8Dole International, 7Don Quijote, 1–2, 5–7, 12, 19, 21–22Edion, 19, 21–22Familymart, 14, 19–22Fast Retailing, 14, 19–21Fortress Investments, 18Front Retailing, 19–22Fuji, 19, 21–22Genky Drugstore, 1Genten, 11Geo, 20, 22Giorgio Armani, 5Goldwin, 12–13Government Stockpile, 7Green Label, 9GU, 20–22Guerlain, 6Gyomu Super, 13H2O, 19–22Hankyu Hanshin, 19–20Heiwado, 20Helena Rubinstein, 6IKEA, 9Isetan, 1, 19, 21Itochu Shoji, 8–9, 11Izumi, 19–22Izumiya, 20Japanese Retail, 15Jonetsu Kakaku, 5Joshin Denki, 20Kansai Food, 20Kasumi, 18, 20, 22KDDI, 19Kirin, 11KKR, 5Kobe Bussan, 19, 22Kohnan Shoji, 20–22Koikeya, 12Kojima, 20Komeri, 1, 20–22Kuipo, 1, 11La Mer, 6Lanvin, 11Lawson, 7–8, 10, 14, 19, 21–22Life Corp, 19, 21–22Loewe, 8Lopia, 1, 13–14, 18, 22Lowya, 2Mammy Mart, 22Maruetsu, 20Marui Group, 21–22Maruzen, 22Mash Holdings, 8–9Matsukiyo Cocokara, 14, 19, 21–22Mercari, 22Ministop, 10, 20–22Misaki Shoji, 11Mitsubishi Estate, 3Mitsui Fudosan, 3–4Mitsukoshi, 1, 19, 21Muji, 1, 9, 22My Basket, 10Nihon Chozai, 20Nitori, 1, 9, 14, 19, 21–22Nojima, 19, 21–22OIC, 14, 19, 22Oisix, 1, 12Parco, 8Peace Deli, 12PPI, 5–7, 14, 19–21QVC, 7Rakuten, 7, 13Seibu Ikebukuro, 1, 6Seiyu, 5, 13, 20Seria, 22Seven Eleven, 1–2, 7–10, 14, 19, 21–22Shimamura, 1, 19, 21–22SNSA, 19Sogo Seibu, 18Sugi, 19, 21–22Sumitomo, 7, 20Suntory, 11Tiffany, 6Tokyo Derica, 11Tokyu, 6Topvalu, 10Tsuruha, 1, 19–22Uniqlo, 1, 19, 21–22United Arrows, 1–2, 8–9USMH, 19–20Valor, 19–20Welcia, 14, 19, 21–22Xebio, 18, 20, 22Yamada, 19, 21–22Yamaya, 22Yaoko, 19, 21–22Yodobashi Camera, 6, 19York Benimaru, 9, 19Zozo, 21–22