February 2026 Issue
Record tourism not boosting retailers as Chinese stay away
Record tourism is feeding the coffers of hotels, holiday lets and restaurants but retailers are benefiting less because Chinese make up a declining proportion – a problem since they spend more than double other nations on shopping. With the Chinese government recommending its citizens stay away from Japan, the outlook for duty-free shopping is not as rosy as it could be.
Editorial: Fashion sector challenges
Itochu invests in brands and retail
Itochu has benefitted hugely from its assiduous decision to give more attention to its lifestyle brand business and is now doubling down, adding more brands and, especially, more stores as it expands its direct exposure to the consumer market.
Valentine’s Day is for me, not my lover – and definitely not my boss
Japan’s Valentine’s Day market is huge for chocolate sellers, but its role and importance have changed dramatically in recent years. Once a patriarchal anachronism, today’s chocolate shoppers are women buying for themselves.
More female bosses for Don Quijote
Don Quijote is one of a number of retailers accelerating diversity initiatives with a focus on women’s career development and health, while the wider Japanese retail sector races to build more inclusive workplaces.
Lawson and FamilyMart: now better than Seven Eleven?
All convenience stores face the same structural pressures but Lawson and FamilyMart are diverging from the Seven Eleven model that worked for decades. FamilyMart is leaning into media, fandom, and finance, while Lawson is pairing tech‑driven efficiency with community‑oriented new formats and a rethink of its discount arm.
TSI invests but struggles with core business and layoffs
TSI is rich, which has boosted its share price since 2023, but the core fashion business has struggled recently due to the golf implosion, lower department store sales, and poor execution. It is investing in new businesses, but worries remain about the long-term outlook, resulting in significant layoffs which have led to lawsuits.
Onward aims for 3x cosmetics sales
Onward has outperformed its peers among clothing firms in the last few years thanks to a D2C strategy that has actually worked. It is now expanding into new categories like cosmetics and will use this skillset in omnichannel distribution to increase market share.
Rakuten accelerates supermarket ties to combat Amazon
Rakuten has signed Tobu Store as the latest vendor on its online supermarket platform, and now has the most vendors, although Amazon’s service includes much larger players. Meanwhile, there is also plenty of competition from retailers’ own platforms in a fast-growing online food market where customers prioritise fast delivery.
And ST expands mall platform in bid for ¥400 billion in sales
And ST’s online platform is becoming a popular channel for third-party brands and is regarded by the company as the future core of its business, not only in fashion but in other lifestyle products. It is also signing more overseas brands to build up its portfolio.
Cosmos Yakuhin: from discount drugstores to cheap hotels
Opening new stores at a rate of 60-100 a year, Kyushu-based Cosmos Yakuhin will soon operate nationwide and will hit ¥1 trillion in sales this year, but it is now looking to diversify, with plans to do to the hotel industry what it has done to supermarkets.
FOCUS
2025: A tough year for consumers
As our in-depth review of consumer data highlights in 2025 shows, Japan’s worrying demographic trends and labour crisis, persistent inflation, and sluggish real wage growth, show how these pressures are shaping household spending. This in turn is having a significant impact on retail performance and is likely to become more acute moving forward. Even in the short term, the impact of price inflation will likely prove the single defining issue in Japan’s upcoming election.
Data: Worst December for Department Stores
IN BRIEF
The best popup store locations in Japan
Cariuma opens first Japan popup
Tower Records tries mini stores
Loewe unveils largest Japanese store
Norwegian Rain expands “no stock” stores in Japan
Staff Start hits GTVs of ¥221 billion
Logistics costs continue to climb
Quartz Shinsaibashi opens in April
Aeon offers more volume for the same price
The Hyundai opens in Parco Nagoya
Marubeni buys UK sneaker brand Gola
Hankyu Umeda to launch Hankyu Luxury next month
Yaoko exceeds 200 stores
Asics adds in-store track in Osaka
Cosmetics prices polarising
Lawson adds bear countermeasures
Descente pushes footwear
Caguuu raises ¥1.5 billion
Korean golf brand Fairliar ties with Alpen
Nitori opens online mall with Mirakl
Rohto Acquires Thai’s Thann brand
iStyle launches @Cosme Copilot for brands
Food delivery set to expand
Japanese planning more solo travel
Sapporo One development due in 2029
Aeon Kyushu aims for 100 small supermarkets
Brands and Companies in this Issue
Adastria, 1, 4, 12
Aeon, 6–7, 11, 20
Alain Ducasse, 7
Alpen, 10
Amazon, 1, 10–11
Ambier, 10
Amu Plaza, 21
Anoza, 6
Avirex, 9
Azabudai Hills, 11
Baggallini, 7
Beisia, 11
Bic Camera, 20
Boston Consulting, 9
Bulgari Il, 7
Caguuu, 10
Cahlumn, 10
Cariuma, 3
Casa Loewe, 4
Chacott Cosmetics, 10
Chanel, 7
Coenseng Global, 10
Coronet, 4
Cosmos Yakuhin, 1, 13–14, 20
Counter Works, 3
CyberAgent, 8
Daimaru Matsuzakaya, 3
Daiso, 12
Daniel Wellington, 11
Daytona International, 9
Dearfoams, 7
Deco Home, 11
Delta Pro, 9
Descente, 4, 9
Disney Resort, 4
Dome, 4
Don Quijote, 1–2, 6
Dotai Chosa, 15
Eddie Bauer, 4
Edwin, 8
Etre Tokyo, 9
Fair Liar, 10
FamilyMart, 1, 4, 6–8, 19
FamiPay, 8
Fast Retailing, 2, 13–14, 20
Fila, 4
FMV, 8
Freak, 10
Fuji Oil, 6
Genky Drugstore, 1
Global Work, 12
Godiva, 5–6
Gola, 7
Green Beans, 11
Gyomu Super, 7
H2O, 3, 20
Hankyu, 1
Happy Lawson, 7
Heiwado, 20
Honeys Holdings, 1
Hulic, 6
Hyundai, 6–7
Inageya, 11
Isetan, 1, 3, 5, 14, 20
Itochu Shoji, 4, 9, 13
Izumi, 20
Jade, 4
Jill Stuart, 9
JILS, 6
JJ, 2
Joinus, 21
Joix, 4
Jun, 12, 22
Kansai World, 1
Karrimor International, 4
Kashiyama, 10
KDDI, 7
Kelty, 4
Kokobuy, 10
Kolor, 4
Komeri, 1
Kururu, 3
Lalaport, 4
Lawson, 1, 6–9
Lawson Mart, 7
Leilian, 4, 8
Lepsim, 12
LeSportsac, 4
Letrange, 7
Life Corp, 11, 20
Locondo, 4
Loewe, 4
Lopia, 6–7
Louis Vuitton, 7
Lucua Osaka, 21
Magaseek, 4
Maison Chaudun, 6
Margaret Howell, 10
Marubeni, 7
Mash Holdings, 4
Matsukiyo, 8, 20
Matsuya Ginza, 6
Maxvalu Tokai, 20
MiiR, 4
Mirakl, 10
Misaki Shoji, 2
Mitsukoshi, 1, 3, 5, 14, 20
Mizujin, 4
Muji, 1, 14, 19
Nano Universe, 9
Nautica, 10
Nice Weather, 4
Nitori, 1, 10–11, 14, 20
Norwegian Rain, 4–5
NTT, 8
OniGo, 11
Onward Crosset, 10
Outdoor Products, 4
Pan Pacific, 6
Parco, 6, 19
Paul Smith, 4
Pearly Gates, 9–10
Pierre Marcolini, 6
Port Island, 10
PPI, 6, 20
Qoo10, 10
R1000, 2
Racole, 12
Rakuten, 1, 11–12, 19
Ricovita, 4
Rohto Pharmaceutical, 11
Rolarola, 6
Ryohin Keikaku, 14, 20
Sanei International, 9
Sanyo Shokai, 10
Sapporo One, 13
Schiaparelli, 7
Seibu, 5
Seijo Ishii, 7, 11
Seven Bank, 8
Seven Eleven, 1, 7–8
Shein, 2
Shimamura, 1–2, 13–14, 20
Shopcounter, 3
Sogo, 5
Staff Board, 12
Staff Start, 5
Studio Clip, 12
Sundrug, 20
Takanawa Gateway, 7
Takashimaya, 1, 3, 6, 20
Takashimaya Nagoya, 5
Tech Labs, 7
TechMagic, 7
Teikoku Databank, 2, 17
Thann, 11
The Hyundai, 6
Tobu Railways, 11
Tobu Store, 11
Tokyo Style, 9
Tomorrowland, 4
Topvalu, 6
Tower Records, 4
TSI, 1, 9–10
Tsuruha, 1
Uber Eats, 11–12
Ueno Shokai, 9
Under Armour, 4
Uniqlo, 1, 14
United Arrows, 1, 4, 9, 12
Uny Mall, 21
USMH, 14, 20
Valor, 11, 20
Vanish Standard, 5
Vivienne Westwood, 4
VTcosmetic, 11
Wego, 10
Wolt Japan, 12
Workman, 1–2
Yahoo, 10
Yaoko, 8, 14, 20
Yutori, 19
Zozo, 13