After sales at department stores rose for the first time in 16 years in FY2013, most forecasts suggested those gains would be wiped out by the collapse in spending post-tax hike. This didn’t happen for most major stores in most big cities, even while regional stores continued their decline. The surge in tourism helped, but […]
Daimaru Shinsaibashi is to be closed and completely rebuilt over a three year period. The iconic Osaka store has suffered less than some of its rivals in the face of the big increase in department store sales space since 2011, but the building is ancient by Japanese standards and increasingly unsuitable for modern retailing. J […]
Investment in converting stations and surrounding areas into shopping centres and community hubs has paid serious dividends for railway operators. FY2014 saw solid growth on a like for like basis, but closure of properties for rebuilding and refurbishment, combined with some correction following the 2014 tax hike, meant a contraction in revenues for some. This […]
The wholesale sector remains an important part of most distribution channels, notably in food, drugs and toiletries. In others, such as electronics, wholesaling is on life-support if not actually dead, while apparel has evolved into a vertically integrated channel where single companies control all aspects of distribution, and traditional wholesale manufacturers have shifted into retailing […]
While GMS chains are still larger by sales volume, convenience stores continue to make the greatest progress in the FMCG sector. Last month saw a range of announcements of yet more sales growth, new private brands, and other marketing initiatives. The Japan Franchise Chain Association (JFCA) recorded convenience store (CVS) sales up 1.6% in […]
Tomorrowland buys Restir Leading fashion retailer Tomorrowland has acquired select shop firm Restir Holdings. Established in 1987, Restir originally began as a select shop called Le Ciel Bleu, now a chain of 20 stores. During the high end select shop boom in the late 2000s it opened a luxury select shop in Ginza under the […]
Retail results for FY2014 show just how well corporate retailing weathered the impact of the consumption tax increase in April 2014. Market share for the largest companies continues to grow, as does the percentage of sales taken up by private brands, but dynamism is also reflected in the emergence of new success stories. These are […]
Mitsui Real Estate will open five major malls this year, including its first outlet mall in Hokuriku and a 90,000 sqm mega mall in Osaka. While Aeon plans to add even more new leasable space this year, Mitsui still remains the second biggest SC developer by new mall development, and continues to consolidate its SC […]
Japan’s overall population decline is currently only visible in the outer regions, particularly in small and medium cities, but it will have a major impact on consumer brands and retailers. Two recent government white papers highlight the problem, introducing a new designation for cities expected to experience medium-term decline. Longer term the same trend will […]
While GMS chains are still larger by sales volume, convenience stores continue to make the greatest progress in the FMCG sector. Last month saw a range of announcements of yet more sales growth, new private brands, and other marketing initiatives. Lawson: Year on Year Same Store Sales Change by Sub-Format, 2014-15 The Japan Franchise Chain […]
Walmart has now owned Seiyu for almost 13 years, and has recently achieved some success. In late May, Steve Dacus stepped down as CEO after four years in charge, having overseen consecutive years of same store sales growth. There remain doubts over Seiyu’s ability to make real progress given its limited chain and lack of […]
The Coffee Bean & Tea Leaf opens first Japanese branch The first Japanese outlet for LA-based Coffee Bean & Tea Leaf beverage chain opened in Nihonbashi last month. Founded in 1963, Coffee Bean & Tea Leaf is regarded as one of the progenitors of the gourmet coffee business in the US and is today owned […]
Japanese consumers have fallen in love with convenience store coffee and are drinking it by the litre. This is the latest example that proves how well convenience stores understand their market and the opportunities that exist if suppliers can bring the right product to the table. No other sales channel is as powerful as convenience […]
Yamada Denki remains one of Japan’s most aggressive and innovative retailers. It is, however, fighting a losing battle as the market around it contracts and consumers find cheaper options online. Last month it simultaneously closed 1% of its entire chain and sold a 5% share in the business to Softbank, the latter a defensive move […]
Japan has always been accepting of the LGBT community, although, as in the West, the more conservative avoid any public debate. A more liberal society and greater internationalisation in general mean more and more companies are openly targeting this market, which a recent report suggests has a value of close to ¥6 trillion. Japanese firms […]
Yamato will launch an e-commerce package for retailers this month, leveraging its vast logistics base. The new service brings competition for Amazon and Seven & I, with rapid fulfilment to customers and backend support, while crucially helping Rakuten and other portals solve their problems with patchy merchant deliveries. Small merchants will even be able to […]
So, with the consumption tax introduced on 1 April, just how well did retailers do in March? On the whole, the situation was similar to the last increase back in 1997, but with far greater buying of high end items and, for some categories, sales increases that were as high as the month before the […]
Fred Segal opens in Log Road SC in Daikanyama Fred Segal opened its first Japanese store last month within a new 2,000 sqm shopping space operated by Tokyu in Daikanyama. Fred Segal in Japan is operated under a franchise by Mark Styler. Along with Fred Segal, which has both men’s and women’s stores and a […]
Calendar year results for the three big format sectors, department stores, GMS and supermarket chains, and convenience stores, provide a quick hint of what to expect from results at the end of the financial year. Although 2014 was a difficult year given the increase in prices from tax hikes and higher cost imports, on the […]
Convenience stores are determined to become the hub of Japanese life, both selling essential goods but also a vast range of services, as well as becoming the local depots for online orders. The latest idea is to turn your local conbini into a quasi medical clinic, offering basic medical tests and products, particularly those targeting […]
