December 2025 Issue
FOCUS
E-commerce: still the fastest growth but slowing
Despite Japan’s caution towards online retail, new data shows e-commerce not only remains one of the fastest-growing retail channels but is poised to become the country’s largest by 2027. While economic pressures and consumer interest in physical shopping have slowed year-on-year growth, the broader trends favour online shopping’s expansion – driven by food, fashion and omnichannel innovation.
Labour shortage in consumer market hampering growth
The labour shortage is fast becoming a serious economic burden, with growing numbers of consumer-facing SMEs going out of business because of staff shortages as they cannot meet demand even when it’s there. PM Takaichi is signalling a reduction in immigration, so the country needs other solutions.
Editorial: Retail musical chairs: more consolidation
FamilyMart’s Convenience Wear aims for ¥20 billion
The idea that clothing basics from a conbini could morph into a global apparel brand would have been laughable two years ago, but not anymore. With Ochiai and Nigo on board, FamilyMart’s Convenience Wear is scaling fast and is set to become Japan’s 65th biggest apparel retailer this year.
More tourist taxes debated
Record levels of inbound tourists, coupled with high demand for premium and luxury accommodation, as well as some kickback and criticism of over-tourism from Japan’s new prime minister, are all pointing to more taxes on overseas visitors.
Tokyo Base to expand again, including Europe
Tokyo Base struggled during and after Covid, but the promoter of Japanese design has begun to find a following with inbound tourists, as well as a new generation of Japanese customers, and is now planning greater expansion both at home and overseas.
Tsuruha-Welcia: will scale translate into profit?
Tsuruha and Welcia will merge before the year’s close, backed by Aeon and targeting ¥50 billion in cost savings over three years. Consolidated procurement, revamped private brands and a unified points and customer‑ID strategy are central, but weak food offerings, legacy stores and IT complexity still threaten sustainable profit recovery.
Korean fashion wave continues
Zozo has opened a new section of its online platform that will offer no less than 1,500 Korean brands by the end of this month. This reflects just how mainstream Korean design and culture has become. More Korean brands are setting up here directly too, but the big platforms continue to grow exponentially.
Rakuten and Yahoo take more share
Rakuten and Yahoo Shopping continued to outperform the e-commerce sector overall in the past six months – Amazon data is due early next year – on the back of heavy promotions but also thanks to the recently banned points scheme for tax offsets, so revenues may now dip again without that incentive.
Rice crisis continues to dampen consumer demand
The rice price crisis is probably the biggest political and consumer issue in Japan today and one that no prime minister can afford to ignore. Prices hit record highs again in October, and for now at least, the only solution appears to be allowing more imports.
World absorbs Right On
World will buy 100% of Right On next March in order to accelerate reforms of the casual clothing retailer – sales at Right On have fallen 70% in a decade. World itself continues to rationalise its own sprawling business.
Power couples will pay for time
Power couples and households, where both partners have high incomes, are reshaping affluent consumption. Unlike asset-rich households, the income-rich prioritise time efficiency, education, and quality of life over conspicuous luxury. In response, marketers need to offer lifestyle enhancement and service value, not just brand prestige.
United Arrows sells Coen
United Arrows has struggled to improve profitability since Covid despite significant HQ restructuring and has decided to sell its beleaguered Coen chain. Gyet, formerly Mac House, will acquire the brand and plans to invest cash flow from Coen into cryptocurrencies – for reasons only it can really fathom.
Data: Shopping malls up 6.3%
IN BRIEF
Yagi Tsusho signs Khaite
Parco Shibuya hits record, Parco Shizuoka to close
41 new large store submissions in August
Costco in Shikoku
Marui City Yokohama to close
Seicomart brings Spanish churros to Hokkaido
Nudie Jeans opens Shibuya Outlet
Yamanashi Nouveau better than Beaujolais?
Muji ReMuji expands
Atre to open Oimachi Tracks in March
Ships starts resale programme
Under Armour goes local
Digdig raises ¥400 million
Tutuanna Doubles Down on Men
Paseo mall replacement due in 2028
Dating apps becoming mainstream in Japan
Bulgari jewel in Omotesando
AirCloset Launches AI Stylist Assistant
Mitsui Outlet Park to open in Kyushu
Sann Freres signs Leblon Delienne
Racing café opens in Kyoto
Mobile phone shipments rise
Fujii Daimaru to rebuild
Brands and Companies in this Issue
Aeon, 2, 6–8
Airbnb, 4
AirCloset, 11
Amazon, 2, 8–9, 14, 17, 20
Atre, 7
BAPE, 4
Baycrews, 20
Beaujolais Nouveau, 6–7
Beenos, 9
Beisia, 4
Belc, 4
Bic Camera, 17, 20
Bioral, 8
Bulgari, 11
Cainz, 14, 17
Christophe Lemaire, 12
Citen, 13
Coen, 1–2, 13
Colorfield, 11
ColorMe, 20
Cosmos Yakuhin, 4
Costco Wholesale, 4
Creema, 20
Curry Up, 3
Daimaru, 1
Digdig, 9
Direx, 4
Disney, 12
Dome, 8–9
Doubleday, 11
Edion, 4, 17
FamilyMart, 1, 4
Fast Retailing, 20
Fujii Daimaru, 13
Green Beans, 20
GU, 20
Gyet, 2, 13
Hankyu Hanshin, 11
Hot Chef, 5
Human Made, 3–4
IKEA, 14, 17
Isetan Mitsukoshi, 8
Itochu, 4, 8–9, 13
Jade Group, 20
Java Corporation, 13
Jun, 22
KDDI, 20
Khaite, 3
Kodak Apparel, 8
Kokuyo, 4
Komeri, 1, 17
Lautreamont, 13
Lawson, 20
Leblon Delienne, 12
Locondo, 20
Lohaco, 20
Lumine Est, 21
LY, 2, 8–9, 14, 20
Lyst, 9
Mac House, 13
Mark Styler, 14, 20
Marui, 5
Marui Group, 5
Matsukiyo Cocokara, 7
Mediquitous, 8
Mercari, 20
Mitsubishi Shoji, 11
Mitsui Fudosan, 12
Mitsui Sumitomo, 9
Moimoln, 8
Mr Max, 4
Musinsa, 7–8
Narumiya International, 11
Nigo, 4
Nitori, 1, 14, 17
NTT, 13
Nudie Jeans, 6
Nugu, 8
Oimachi Tracks, 7
Oisix, 20
Pal, 20
Parco, 3
Paseo, 10
Peanuts, 12
Qoo10, 7, 20
Rakuma, 20
Rakuten, 1–2, 8, 11, 14, 17, 20
ReMuji, 7
Restir, 8
Ritan, 5
Ryohin Keikaku, 7
Seicomart, 5
Seven Eleven, 16
Shoplist, 8
SoftBank, 13
Starbucks, 8
Studious, 5
Suntory, 6–7
Tabio, 10
Tokyo Base, 1, 5
TSI, 20
Tsuruha Holdings, 6
Tutuanna, 9
Under Armour, 8
Uniqlo, 1, 4, 10, 20
United Arrows, 1–2, 9, 13, 20
Urban Research, 20
WAON, 6–7
Warner Bros, 12
Welcia Holdings, 6
Workman, 1, 15
Yagi Tsusho, 3
Yahoo Shopping, 8–9, 20
Yodobashi Camera, 17, 20
Zozo, 7–9