Category Archives for "FMCG"

Jul 15

Marui to switch to SC model

Marui is often classified as a department store because most of the brands in its buildings are contracted on a concession basis, just like a traditional department store, even though many of the tenants are specialty chains. This definition also makes sense given Marui’s low level of profit, partly the result of this same operating […]

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Jun 15

Aeon: switching to city centres

Shopping centres are at the heart of Aeon’s business. By late 2016, Aeon will have completed a series of large scale malls stretching across the country, including improved entertainment features, better location targeting, and improved integration with other retail banners in the group. The only problem is that 70% of Aeon’s existing malls are in […]

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Jun 15

Japan Post to launch e-commerce and fulfilment service

Japan Post will be publicly listed next year and has been preparing a move into a brasher, more commercial world for years. Its latest plan is to exploit its trusted brand, post office network and logistics to create a one stop shop e-commerce service emulating the merchant services of Rakuten and Amazon and the logistics […]

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Jun 15

Ace: a travel solutions business

Ace is Japan’s biggest home-grown luggage firm, despite losing both Samsonite and Tumi over the last decade. As well as signing replacements, it is also investing heavily in its own brands with plans to globalise distribution over the next few years with the help of US subsidiary Zero Halliburton and Italian partner Pelletteria Clio. Ace, […]

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Jun 15

Aeon to consolidate supermarket interests, create new Kanto chain

Having announced a consolidation of drugstore interests back in March, in May Aeon said it plans to establish a new operating company for three of its main supermarket interests in Tokyo, with other Kanto companies joining in later phases. While long expected, the news brought a flurry of speculation as to future moves. An openly […]

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Jun 15

Inditex rolls out new stores, Zara Home breaking records

Inditex Japan now has four of its Spanish parent’s brands operating here, and based on plans for the rest of this year, looks like entering a new phase of expansion, creating one of the largest foreign retail businesses in Japan. Stradivarius’s launch in Japan in January and Zara Home’s new flagship in Aoyama were met […]

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Jun 15

Small city supermarkets: the latest food format begins to take-off

Convenience store expansion has passed its peak and retailers are looking for new solutions for small footprint food retailing. The number of c-stores exceeded 50,000 in November, reaching 50,890 stores in February and then dropping in March. With the exception of sector leader Seven Eleven, all the major chains, along with various supermarkets (see Page […]

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Jun 15

April and May retail sales steady

Retail sales fell in April as expected, and by marginally more than in 1997, but the industry still performed well and the extreme decline feared by many did not happen. Indeed, many chains were reporting that sales were back to levels seen in 2013 by the end of the month and others were already back […]

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May 15

May 2014 News in Brief

Musashi Kosugi becomes key suburban retail hub As JC’s new report on Japan’s Top 100 Markets shows, Musashi Kosugi already has the highest apparel spending per capita in the country but is about to become an even more important retail hub, with two new SCs opened last month and one more due this Autumn. Mitsui […]

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May 15

Retail groups: M&A to shape retailing future

Retailing in Japan has been consolidating since the late 1990s, starting with Itochu’s acquisition of Familymart from the now defunct Seibu Saison Group, and the bankruptcy of Sogo soon after. After several years of tentative exchanges and realignments, M&A has at last become a core part of retail strategy, just as it is in many […]

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May 15

Cosmos Berry’s: Yamada Denki’s way into the senior market

Yamada Denki is the dominant consumer electronics retailer with 25% of the market. The company faces pressure from declining sales due to market saturation, and has begun diversifying into new businesses as a result. But it has not given up on expanding market share yet, and already has 8,000 independent stores signed up as franchisees. […]

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May 15

Parco forecasts 10% increase in sales

Parco now has money and it plans to spend it too. With backing from new main shareholder J Front Retailing it is sprucing up long-neglected buildings, adding new ones, and even expanding its specialty chain business again. Parco published its latest three year plan last month forecasting sales will rise to ¥293 billion in FY2016, […]

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May 15

Showrooming on the rise as online sales expand

The future of retailing is in the so-called omnichannel, seamlessly linking physical stores and customer pick-up points, with the ease and low cost of selling direct online. NRI’s latest lifestyle survey run in 2012 and published recently provides further evidence for this trend. Although more people are browsing in stores to check out products before […]

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May 15

Middle aged women enjoying their time alone

There’s an increasing need for companies to look carefully at catering to older Japanese. There are already 16 million households over 65, of whom more than 5 million live alone. With the number of permanently single people in their 40s and 50s continuing to grow, this is a new, important segment and one that’s not […]

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May 15

Seiyu preparing for more direct imports, introduces new price cuts

Seiyu is again taking a lead in the FMCG sector. Two years after shocking the industry with price cuts on basic goods, causing rivals to complain bitterly about excessive competition, the US owned chain announced more price reductions in April. In addition, it is now preparing to better leverage Walmart’s global supply system, bypassing Japanese […]

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May 15

Cosmetics brands enjoy buying rush

Major cosmetics brands enjoyed large sales boosts in March as customers rushed to stock up on product before the price increase – this despite the fact that some in the industry had said to expect little impact given that ‘customers only buy when they need cosmetics’. The same executives are expecting a short sales lull, […]

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Apr 15

April 2014 News in Brief

More updates for Isetan-Mitsukoshi  Isetan-Mitsukoshi continues to tailor its key department store properties to suit a narrower target profile. At Mitsukoshi Nihonbashi, a new ‘culture and resort’ area has been created on the 7th floor as part of plans to make the flagship into a cultural emporium for older consumers. The space includes a cafe […]

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Apr 15

Familymart to pull out of Korea

Familymart is the number three convenience store chain, but it is losing sales share to both of the larger two firms. Now, its core strategy of overseas expansion has taken a major blow with the chain planning to pull out of Korea, wiping out 60% of overseas stores. Familymart announced a backward step in its […]

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Apr 15

Home centres grow 0.9%, but sector struggling to compete

Home centres are Japan’s answer to DIY stores in the West, but it is a sector that overlaps heavily with GMS chains and one that increasingly finds it hard to compete. 2013 was a reasonable year, but all of the 0.9% growth in sales came from new space added by just a handful of top […]

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