January 2026 Issue
Yutori: building Community and Cultural IP to target Gen Z
Yutori has come a long way since launching seven years ago, forecasting sales of ¥12 billion for FY2025 with plans to get to ¥30 billion soon. This will not just be from selling more clothes and cosmetics but by turning online communities and cultural assets of all types into saleable items and services, a model of how to target Gen Z.
Editorial: Fewer malls, but a lot more fun
Seven Eleven engages franchisees on reforms
Seven Eleven remains Japan’s largest retailer, but with saturation in the format and new competition, franchisees face a much tougher time than they once did. The company held discussions with owners across the country this autumn to work on new ideas.
JINS targets foreigners in stagnant market
The eyewear market hasn’t grown much in the past decade even as unit volumes have increased, because price points have been held down by chains like JINS and Zoff. Equally, the market is stable and provides a secure haven from which JINS is developing formats to go global.
J. Front to integrate Parco into Matsuzakaya Nagoya
Parco has been one of the best performers among mall developers in the last two years (see page 14) thanks to a ruthless culling of underperforming buildings and courageous levels of investment and tenant choices in its core buildings. As a reward, it is now getting more say over what happens in Daimaru-Matsuzakaya too.
Ministop: Food labelling scandal becomes existential threat
The expiry-date falsification scandal that forced Ministop to halt in-store food preparation in August last year is more than just a food safety issue. It points to deep structural problems: sustained losses, shrinking competitiveness, a franchise system under strain, and a parent company whose own retail strategy may undermine Ministop’s survival.
Descente aims for 90% D2C sales
The gap in positioning between Descente in China and Descente in Japan has been so stark that Descente stores in Japan are almost unrecognisable to Chinese tourists. Itochu is aiming to fix this through more direct investment in stores and online.
Hyundai Dept Store, Tokyu, and Buyma expand K-fashion choice
Further rapid incursion by individual Korean brands continues, but investment by major players is driving the real growth. Following a deal between Musinsa and Zozo to showcase 1,500 brands, last month, Hyundai Department Store launched 450 Korean brands on Nugu. At the same time, Buyma has also opened its platform to make it easy to access Korean brands not yet sold here.
Aeon restructures mid-sized supermarkets in Kansai and Tokyo
Aeon is continuing its programme of subsidiary consolidation and reorganisation, with profitability improving rapidly as a result. In the capital, Aeon Food Style will consolidate multiple banners, while in Kansai, Daiei will merge with Kohyo. Aeon is (finally) moving towards a much more consolidated model, reducing duplication, and fusing large procurement capacity with localised knowledge.
Nitori: ‘big company disease’
In May last year, Akio Nitori returned as the president of the furniture retailer he founded, at the spritely age of 81. Nitori, who previously said he was enjoying his time as chairman, is dissatisfied that the chain is facing a slowdown compared to rivals like Muji and referenced the problems of ‘big company disease’.
Mash: growth with overseas brands
Mash largely focused on its own brands as it grew to become one of the biggest premium lifestyle retailers over the past 20 years, but recently, it has become a successful partner with overseas brands to diversify and accelerate brand development – so successful that some Japan-developed products are now sold back to the overseas partner.
Could discounters derail Tsuruha’s ambitions?
Tsuruha is about to absorb Welcia and together, will become a ¥2 trillion operation and far bigger than drugstore rivals. This should be a winning combination, but price competition is changing the playing field.
FOCUS
Shopping Malls: solid sales, little investment
Sales at shopping malls rose last year but at nothing like the rates of previous years. Even the top 100 saw much more muted growth as the post-Covid correction ended and inbound tourists spent less on average. The outlook is uncertain given the massive pressures on household budgets in the face of higher prices of essentials. Development has also collapsed due to higher costs, labour shortages and competition, with little chance of a reversal in 2026 either.
DATA: Dept. stores up 0.9% in November, and malls 6.2%
IN BRIEF
IKEA to open in Okayama, but close in Harajuku and Shinjuku
More mid-career moves for older staff
Tourists at new records
Melvita exits Japan
Mitsui Fudosan invests in Tokyo malls
54 large stores approved in September
Beutea opens in Nagoya
Don Quijote Launches Re:Price chain
Fast Retailing raises starting salaries again
Zara opens Japan’s first men-only store
Seibu gets green light for Shinagawa redevelopment
Estnation popup for Sweden’s Magniberg
Tokyu Plaza now Ginza Novo
2.7% growth for cosmetics market in 2025
New store for French outdoor brand Pyrenex
Zozo releases trend report
Young staff want 3-day weekends
New major development signed off in Osaka
Korea’s Bocbok in Shibuya
Former Marui Ikebukuro site to open in March
Moonbat signs US bag brand Naghedi
Valor opens in Yokohama
Onward buys Cosmé de Beauté
Tokyu plans major station facility in Yokohama
Arcs: ¥1 trillion by 2034
OIC Group opens school for future executives