September 2025 Issue

FOCUS:

Department Stores: is the luxury party over?

Department stores saw a 3.5% sales rise in FY2024-25, driven by VIPs and inbound tourism, though urban stores far outperformed regional counterparts. Much of this growth fell away from the Spring but then recovered in August. Top chains are looking to wealthy VIPs to counter weaknesses in areas like apparel, and investing in app-based customer identification, personalised events, and experiential content to attract younger, high-spending shoppers. This reflects the shift toward personalised and lifestyle-driven consumption at top stores – but the sector as a whole will contract further.

PPI aims for market leadership with 550 more stores

Having lost out to Trial in acquiring Seiyu, PPI’s new president last month announced an aggressive strategy to hugely expand through a roll out of a new chain of up to 300 supermarkets and the addition of 250 more Don Quijote stores.

Editorial: Lots of discounters, lots of flagships

Only 10 new malls in 1H2025

2025 is proving one of the worst years in recent history for shopping mall development due to high costs, paucity of labour and shrinking tenant demand – but sales remain robust for existing malls.

TSI buys Freak’s Store owner Daytona International

Like all the big apparel firms, TSI sees diversification as one of the few ways to find growth in a contracting market. It has the cash to do this and has just bought Daytona, the respected operator of the Freak’s store chain. It will use its access to capital to accelerate expansion for new fashion chains.

Trial expands into Tokyo with (almost) unmanned stores

Trial HD’s acquisition of Seiyu massively expands its interests in and around Tokyo and the discounter has wasted no time rolling out its Trial GO stores in the capital. These stores offer fresh food at about half the price of typical convenience stores, thanks to low costs and smart tech, and will rapidly intensify competition.

Guess back in Harajuku

Guess used to sell ¥7 billion a year in Japan but almost all of it under license to Itochu affiliates. After quitting the market due to the inevitable brand dilution, Guess is now aiming to rebuild anew, positioning as a premium and innovative denim brand across Asia, with Japan as its anchor.

Home decor e-commerce expansion continues

E-commerce is a natural fit for furniture brands given the difficulty of taking purchases home from stores. A number of start-ups are attracting investment and growing fast, but more established online players like Lowya are now opening stores given demand to try out furniture before purchase.

Geo focuses on reuse market

Geo, once a simple video rental chain, now operates more than 2,000 stores, half of which sell reuse clothing and interiors. With used clothing sales alone up 16.6% last year and its used phone business also on the up, Geo will change its name next year to reflect its ambition to become a global leader in reuse retailing.

Aeon restructuring as Seven & I flounders

Aeon, Japan’s largest retail group, is accelerating business reforms across supermarkets, drugstores, private brands, apparel, e-commerce, and mall facilities, while investing heavily in customer experience and operational efficiency.

LY finally integrates LINE app with shopping

LY is finally moving to integrate LINE and Yahoo more effectively. LINE has 100 million users in Japan and yet until now there has not been a shopping tab within the LINE app to encourage cross-use. This is finally happening in September and, along with some AI-based UI and search improvements, should help LY maintain parity with Rakuten, if not surpass it, on growth rates.

90% of low income households struggle to feed their kids

Japan’s lower income households are suffering as prices remain well above government targets and staples, notably rice, continue to be very expensive. Despite a small drop in the inflation rate in July, households are struggling and, with the release of government rice stockpiles more or less complete, rice prices remain double what they were in 2024.

Genky aims for 10% growth

Genky Drugstores is one of three hybrid food & drug chains, all of which target the discount end of the market. Unlike rivals, Genky’s blend of in-house control of both store and product development, and logistics, is making it a growing threat to competitors in central Japan.

Retail Data: Department stores down 6.2%, malls up 2.4%

IN BRIEF

Calvin Klein unveils Harajuku flagship

Yahoo! Quick Mart closes

Aeon Mall to close Mito OPA next year

Seibu Ikebukuro’s food basement to reopen

Deckers Japan: fast store expansion for Hoka

Yamato robots deliver inside apartment blocks

Nike closes and reopens in Harajuku

Seven & I’s low cost PBs gaining popularity

On opens flagship in Ginza and popup in Harajuku

Pride Month promotions increase

Mitsubishi to open Yurakucho Park

Bag licensee of Orla Kiely goes under

Patagonia to open in Kyobashi

Lucua to add annex in 2026

More Korean brands open stores

56 large store applications in June

Ecco new concept on Meiji Dori

The cake terminator: automated baumkuchen

ANAP buys Basicks brand

Tokyu invests in station facilities

Joint deliveries prove successful in apparel

Self-driving truck developer raises ¥5 billion

Izumi introduces new private brand

Workman Launches Official App

Brands and companies in this Issue

Adastria, 1, 4, 12
Ader Error, 10
Aeon, 1, 3, 5–6, 9–10
Amazon, 7–8, 10
ANAP, 12
Askul, 1, 12
Auralee, 18
Authentic Brands, 6
Bain Capital, 9
Baroque, 12
Basicks, 12
Beenos, 12
Caguuu, 7
Cainz, 7
Calvin Klein, 3
Clas, 7
CocaCola, 7
Daiei, 9
Daimaru, 1, 14–16, 18
Daytona International, 4
Deckers Japan, 2, 4
Dokodemo, 7
Don Quijote, 1
Ecco, 2, 10–11
Eddie Bauer, 6
Entetsu, 15
Foufou, 7
Fuji, 9
Fujisaki Sendai, 16–17
Fukuya Yamaguchi, 17
Genky Drugstores, 13
Geo Holdings, 8
Green Beans, 10
Guess Jeans, 6
Hanae Mori, 9
Hankyu, 1, 16
Hankyu Mens, 15
Harajuku Quest, 6
Hoka, 2, 4
IKEA, 7
Inageya, 9
Isetan, 1, 14, 16, 18
Itochu Shoji, 6, 8
Iwataya Mitsukoshi, 17
Izumi, 13
Izutsuya, 15
Jafco, 7
Japa Valley, 8
Juchheim, 11
Kasumi, 9
Keio Shinjuku, 15, 17
Kintetsu Harukas, 15, 17
KKR, 6
Lala Terrace, 3
Loft, 10
Louis Vuitton, 18
Lowya, 7
Lucua, 9
Maruetsu, 9
Mash Holdings, 4
Matsuya Ginza, 14–15, 17–18
Matsuzakaya, 1, 14, 18
MaxValu, 9
Meitetsu, 15, 18
Mila Schon, 9
Minamoa, 3
Ministop, 13
Mitsubishi Estate, 3, 8, 13
Mitsui Outlet, 3
Mitsukoshi, 1, 14, 16, 18
Mizuho, 7
Muji, 1, 10
My Basket, 9
Nagasakiya, 3
Nano Universe, 4
New Yorker, 9
Nike, 2, 5–6
Odakyu Shinjuku, 15, 17
OniGo, 3
Onward Holdings, 4
OPA, 3
Orla Kiely, 8
Patagonia, 2, 9
Peacock Store, 9
Pearly Gates, 4
Pharrell Williams, 8
PPI, 1, 3, 6
Qoo10, 7
Quest, 6
Rakuten, 11–12
Reebok, 6
Sanei International, 4
Seibu, 4, 16
Seijo Ishii, 6
Seiyu, 1–3, 5–6
Seven Eleven, 6, 9–10
Sogo Seibu, 15, 17
Suzaka, 3
Suzuyo, 13
Takashimaya, 1, 14–15, 18
Takashimaya Kashiwa, 17
Tobu Ikebukuro, 15, 17
Tokiwa, 15
Tokyo Style, 4
Tokyu, 12
Topvalu, 10
Trial Holdings, 5–6
TSI, 1, 4, 12
Tsuruha, 1, 10
Tsuruya, 16
United Arrows, 1, 12
Uny, 1, 3
Vega Corp, 7
Verdy, 6
Welcia, 10
Wonderwall, 5
Workman, 1
Yahoo, 3, 7, 11
Yamakataya, 15
Yamato Transport, 5
Yaoko, 1
Yoshinaga, 8