October 2025 Issue

FOCUS

The Great Divide: Fashion Retail’s Oligopoly

Japanese clothing and fashion markets had a solid year in FY2024-25 but once again the top 100 retailers outperformed by a large margin. This meant they surpassed 71% share of the market but, within the specialty market alone, the top 10 retailers own 34%. This is now a clear oligopoly. There are no signs of the situation changing either but rather the capacity of the leaders to invest should further expand share at the top, with leading firms growing store numbers, omnichannel, data-driven customisation and personalisation, and ever greater supply chain efficiencies.

@Cosme: an omnichannel benchmark 

@Cosme is a cosmetics retailer, but it is also an exemplar of how to build a true omnichannel business, with deep ties between the retail chain and online. Its effective use of the deep data available from the 10 million users on its core @Cosme platform is its key asset. It now targets ¥83 billion in sales this year, using data to expand into supplements and Femtech.

Editorial: Big fashion taking over

From brutal to hellish: summers create demand for heat solutions

Japan saw record average temperatures this year, the third year in a row and the highest increase since records began in 1868. Stores are selling out of heat-busting products and are having to extend sales periods for insect repellents. Some retailers are also creating new mid-season ranges of home and fashion products to sell during the extended period of warm weather.

Uniqlo breaks through ¥1 trillion milestone at home

Tadashi Yanai has finally achieved one of his many long-term ambitions: surpassing ¥1 trillion in sales in the home market. This came a year after exceeding ¥3 trillion globally for the first time but his goal of ¥10 trillion remains outstanding, and whether what remains a mostly single-brand company can achieve such volume is open to question. Yanai is rebuilding GU in the hopes of creating a second brand – while at last admitting failure with his old French acquisitions.

Daiichi gains in Hokkaido

Ito-Yokado’s withdrawal from the Hokkaido market has proven a windfall for affiliated chain, Daiichi. The Hokkaido supermarket has already opened new stores in sites vacated by Ito-Yokado – the only difficulty has been finding ways to fill the larger spaces. Now Arcs is waiting in the wings in case Daiichi becomes available for takeover.

Zoff owner doubles stores to 600 with Megane Super purchase

Intermestic, operator of the eyewear retailer, Zoff, has acquired Megane Super for ¥19 billion. WIth 620 stores, the combined new eyewear chain is larger than JINS, but the latter still has higher sales, at least for now. Zoff will use Megane Super’s expertise to take more share in the contact lens market but will also use its new scale to expand its own chain.

Consistent growth in online CtoC markets

The latest METI report on e-commerce shows further growth in the CtoC market, dominated by platforms like Mercari, Rakuma and Yahoo Auction. Sales tools are becoming more sophisticated and easier to use, with better and more accurate appraisals for higher-end items. Younger people are even building their own businesses on these platforms.

Create SD plans more M&A

Create SD is one of the largest food & drug hybrid retailers in the country and dominates its home Kanagawa market. The company now plans to grow sales by 49% over the next five years, adding 30-40 stores a year.

Grow aims for ¥10 billion

Grow is one of a new generation of D2C brands that have realised the benefits of an omnichannel strategy in a market where stores remain key drivers of traffic and brand awareness.

NeWoMan Takanawa: a concept too far?

Lumine celebrated the opening of its third and largest NeWoMan shopping building in Takanawa Gateway last month. The SC introduces a host of innovations and is clearly an attempt at highly experiential shopping – which JR East sees as its future. Questions remain whether sufficient customers will visit the south Tokyo mall to justify the cost.

Retailers fear end of duty-free sales

As the government contemplates abolishing the consumption tax exemption beloved of visiting tourists and relied on by vendors, a recent survey suggests tourists place even more importance on shopping than previously thought. Removing the tax exemption could lead to a large drop in visitor numbers and a fall in sales for multiple sectors.

Honeys’ fast fashion

Honeys Holdings is leveraging its SPA model to drive growth using a data-driven rapid decision-making process to capture demand in the tough womenswear market.

Cheaper unmanned store systems boost low margin retailers

Staffless stores are on the increase, but most are operated by large retailers who can afford expensive systems requiring a lot of sensor infrastructure. New ventures are now offering lower-cost solutions that marry cheap cameras with existing technologies. As a result, even cheap used clothing chains and bookstores can now go staffless.

Isetan-Mitsukoshi community drive

Isetan Mitsukoshi is actively building communities to deepen its connections with customers. Fans of its stores and even specific sales floors now gather to share information, collaborate with buyers on product development, and, crucially, share their views and experiences on social media.

Retail Data: Tourists return to department stores

IN BRIEF

Retail sales fall for first time since 2022

Forever 21 exits Japan for 3rd time

price hikes on over 3,000 food items

Rice production still unpredictable

Amazon’s latest FC includes prayer room

Staff Start adds omnichannel service

Human Made: 10-fold sales growth in five years

Asics: closing in on ¥1 trillion in sales

Parco Shibuya renewal complete

Laox renovates Barneys Japan Ginza

Takashimaya and Hankyu Deepen partnership (again)

Smartphones taking up more free time

Daidoh buys Momotaro Jeans

Goldwin creates thermal jackets using air

Mac House and Nissen Form Partnership

Ito-Yokado and Adastria cancel agreement

World starts luxury bag rentals on online store

Swarovski opens Kansai flagship

Bone structure recognition to count customers

Itochu and Seven Bank confirm strategic alliance

L Catterton invests in Seki Furniture

Takashimaya acquires Claylish

Brands and Retailers in this Issue

Adastria, 1, 3, 7, 11, 16–18
Aeon, 1, 18
Amazon, 3, 5
Aming, 17
Amu Plaza, 19
Aoki Holdings, 17–18
Aoyama Shoji, 17–18
Askul, 1
Avend, 12–13
Bain Capital, 6, 11
Bankan Wamonoya, 18
Barneys Japan, 8, 17
Baroque Japan, 17–18
Baycrews, 14, 16–18
Beams Cultuart, 10
Belluna, 17
Brooks Brothers, 9, 16–17
Chanel, 8, 12
Ciaopanic, 18
Claylish, 13
Conz, 8
Coop Sapporo, 6
Cosmos Yakuhin, 8
Cox, 17–18
Create Holdings, 9
Daidoh Limited, 9
Daiichi, 6
Daimaru, 1, 16–17
Daytona, 1, 16
Disney, 7
Familymart, 13
Fast Retailing, 5–6, 16
Felissimo, 17
Five Foxes, 17
FoundGood, 11
Frama, 7
Gap, 17
Genky Drugstores, 9
Global Style, 16–18
Goldwin, 10
GU, 5–6, 14, 16–18
Hankyu Hanshin, 8–9
Haruyama Shoji, 17–18
Heiwado, 17
Hermes, 11
Honeys, 12, 17–18
Horus Holdings, 7
Human Made, 6–8
Intermestic, 7
Isetan, 1, 13, 16–17
Isetan Mitsukoshi, 13
Itochu Shoji, 3
Itokin, 16–17
Iwataya Mitsukoshi, 16–17
Izumi, 17
Izumiya, 17
Izutsuya, 17
Japan Blue, 9–10
JINS, 7
Jun, 16–17, 19–20
Keikyu, 17
Kintetsu, 17
Koiseio, 8
Komehyo, 8
Konaka, 17–18
LaLaport, 3
Laox, 8
Laxus, 11
Leilian, 17–18
Louis Vuitton, 6, 8
Lumine, 10
Mac House, 10–11, 16–18
Marine Serre, 7
Mash Holdings, 14, 16–18
Matsuya, 1, 16–17
Megane Super, 7
Mercari, 8
Mizuno, 8
Momotaro Jeans, 9–10
Muji, 1, 14, 16–18
Nebraska Tech, 12
NIGO, 6
Nishimatsuya Chain, 1, 16–18
Nissen, 10–11
Odakyu, 16–17
Onward Holdings, 16–17
Osoi, 8
Pal Group, 6, 16–18
Palemo, 16–18
Parco Shibuya, 7
Rakuma, 8
Rakuten, 9
Ryohin Keikaku, 14, 16–17
Samantha Thavasa, 18
Sanki, 17–18
Sanyodo, 13
Sazaby League, 16–18
Seiyu, 6, 17
Seki Furniture, 13
Senshukai, 17
Seven Bank, 12–13
Seven Eleven, 13
Shimamura, 1, 14, 16–18
Staff Start, 5–6
Swarovski, 12
Tabio, 17–18
Takashimaya, 1, 3, 8–9, 13, 17
Takeout, 20
The Hyundai, 8
Tokai Takashimaya, 16–17
Tokyo Base, 8, 16–18
TSI, 1, 17
Uniqlo, 1, 5–6, 14, 16–18
United Arrows, 1, 7, 16–18
Urban Research, 17–18
Vanish Standard, 5–6
Visionary Holdings, 7
Wacoal, 17
Wego, 16–17
Welcia, 9
Workman, 1, 14, 16–18
Yahoo Auction, 8
York Holdings, 11
Zazahoraya Group, 17
Zoff, 7